Economics
Summers, Blanchard Say Waller’s ‘Soft-Landing’ Paper Has Errors
- Vacancies unlikely to normalize without jump in jobless rate
- Economists respond to Waller, Figura paper pulished last week
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Economists Olivier Blanchard and Lawrence Summers said a paper by Federal Reserve Governor Christopher Waller that found a soft landing is a plausible outcome for the labor market “contains misleading conclusions, errors, and factual mistakes.”
The paper by Waller and his Fed research colleague Andrew Figura, released July 29, criticized the approach of research earlier in the month by Summers, Blanchard and Alex Domash that argued the central bank would be unlikely to achieve its goal without inflicting a “painful” spike in unemployment.