Following the 2007-2009 market meltdown, actual jobless flower significantly more than CBO’s projected absolute rate of unemployment for 30 successive residence. Mediocre key rising prices refuted, given that forecast, however, simply modestly, from around dos.0% per year anywhere between 2003 and you may 2007 so you can regarding the step 1.4% a year between 2008 and you can middle-2015. 41 That it smaller reduction of the pace away from rising prices called into the concern the fresh authenticity of natural price model. Continue reading Policy Implications of your Absolute Speed Model