Response to High Unemployment vs. Low Inflation

Monetarists have a ready answer for the correlation between unemployment and inflation: inflation confuses people into thinking that new savings are available, and that new products are needed. They then hire people. If you continue to inflate the currency, employers continued to be confused and maintain this higher employment. Cut inflation, confusion vanishes, and so do those jobs. Don't cut inflation, and you Turkeyize your economy. Suck! I did some work for some Turks, back when $1 == 580,000 TL. I told 'em so. They said "inflation has been working for us for twenty years, there's no reason why it should stop working now." Maybe so ... but it did at the $1 == 2M TL point.

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