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MNI BRIEF: Fed Paper Cools To Idea Of Running Economy 'Hot'

(MNI)

Federal Reserve Bank of Richmond research released Thursday finds little evidence that temporary economic shocks have permanent effects, the basis for the idea of "running the economy hot" during good times to heal the labor market.

MNI has reported on other Fed research pouring cold water on the idea, finding that running the economy hot for a period can reverse some damage from a recession but much of these gains slip away in subsequent downturns.

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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