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Another independent discovery by Harrod (1931), effectively the long-run envelope of short-run average cost curves, also went unrecognized—the credit being awarded to Jacob Viner. Yellen, who now runs the institution, worried that announcing an inflation target would make the Fed focus only on inflation and neglect its responsibilities to bolster growth and jobs. Note that wages do not fall due to the fall in D for Labour.

Pages: 193

Publisher: Scarecrow Press (September 1, 1988)

ISBN: 0810820676

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