If you want to know why Bernanke is not a believer in the recent slate of employment reports from the Bureau of Labor Statistics it is because he knows that (i) the Household survey is notoriously noisy and (ii) if the gains in that report were replaced by what the payroll survey numbers have been printing then the unemployment rate would still be at 9%, not 8.3%. Maybe this explains why the trend in wages is down. not up. The truth. my friends. is always in the "price". And the price of labour is decelerating sad to say, not accelerating.
---DR, 3/20
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