These are the slides that the President of the Federal Reserve Bank Of Minneapolis used to explain why monetary policy has been more successful in controlling inflation than it has in maximizing employment. His analysis assumes that there are two markets. There is a market for labor and a product market. Monetary policy has affected both markets, but it needs to be complemented by fiscal policy to achieve full-employment.
The presentation is a bit technical but the assumptions that are made about the factors that affect product and labor demand are clearly described. The presentation also provides his view of the events in 2007 that caused the demand for labor and products to decline dramatically. There will be lots of discussions about his views on the limits of monetary policy and the fiscal policies that are required to boost labor demand.
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