|
|
|
|
Inflation did not, in fact, become a problem after 1994. After slow growth in the first half of 1995, the economy picked up the pace and by the end of 1997, the unemployment rate was down to 4.7 percent. The Fed lowered rates and kept them low through 1997. You will see from Table 15.1 (27.1) that the federal government deficit fell to essentially zero by the end of 1997. What better outcome could the Fed want? Good growth, low unemployment, low inflation, and a balanced government budget!
|