PrintDecember 22, 2010
Graph for the Day, December 22, 2010
The Inflation-Unemployment Texas Two-Step
"Republican leaders in Congress say they have ‘deep concerns' [i.e., the inflationary potential] about Ben S. Bernanke's second round of quantitative easing. The U.S. stock and credit markets don't share those reservations.
"The Standard & Poor's 500 Index has climbed 17 percent since the Federal Reserve chairman first indicated on Aug. 27 that the central bank might buy more securities to boost the economy."[1]
- Caroline Salas (Bloomberg, Dec. 17, 2010)
Index of the Inflation-Unemployment Texas Two-Step:
July '72 - November '74 inflation rose from 3.0 to 12.2 percent
October '73 - May '75 unemployment rose from 4.6 to 9.0 percent.
December '76 - May '80 inflation rose from 5.0 to 14.6 percent
May '79 - November '82 unemployment rose from 5.6 to 10.8 percent.
December '86 - October '90 inflation rose from 1.2 to 6.4 percent
March '89 - June '92 unemployment rose from 5.0 to 7.8 percent.
March '98 - March '00 inflation rose from 1.4 to 3.8 percent
December '00 - June '03 unemployment rose from 3.8 to 6.3 percent.
June '02 - July '08 inflation rose from 1.1 to 5.5 percent
May '07 - October '09 unemployment rose from 4.4 to 10.1 percent.
Janice Shaw Crouse, Ph.D., author of "Children at Risk" (Transaction, 2010), is Senior Fellow, The Beverly LaHaye Institute, Concerned Women for America.
[1]Caroline Salas, Bloomberg, December 17, 2010, www.bloomberg.com/news/2010-12-17/stocks-rising-17-since-bernanke-disclosed-qe2-disarms-fed-s-worst-critics.html
