Why do we tolerate excessively high unemployment? Dean Baker explains how the employment rate in the economy is a matter of the government's fiscal and monetary policy. Baker contrasts the macroeconomic insights of John Maynard Keynes vs. the more recent views of Milton Friedman when it comes to government spending, unemployment, and inflation. Baker goes on analyze the Federal Reserve's role with particular attention to the decision of recent board chairs (Volker, Greenspan, Bernanke, Yellen, a
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