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So if policy makers increased inflation unemployment would decrease.
But given how our debt is growing, a fiscal crisis looms if policy makers do nothing.
If policy makers do not strengthen reform, then luck is the only thing preventing another meltdown.
"If policy does not react quickly it will be more expensive for taxpayers.
"If policy makers achieve the right balance, a deleveraging isn't so dramatic.
If policy is no longer endogenous, equity risk premia have to rise.
If policy turns out to be slightly too loose, prices are less likely to take off.
If policy is too tight, they will be held responsible for creating recessions.
If policy makers wanted to reduce the current risks, they could consider at least four steps.
If policy makers push the jobless rate lower, the argument is that inflation will inevitably accelerate.
"I don't know if policy and rhetoric are aligned," Mr. Moulitsas said.
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