, through his service in President Kennedy's administration, his receipt of the Nobel Prize in Economics and in his continuing work at Yale University, James Tobin has often been in the public eye.
So that is what I like about today's Fedthat they're willing to be pragmatic about it and willing to see whether it's possible to have lower rates of unemployment or not. REGION: So, in terms of wage inflation, until we see it we shouldn't necessarily worry about it?
TOBIN: Well, I wouldn't necessarily say that you shouldn't worry about it until you see it, but on the other hand you're making a gratuitous assumption if you think you can detect its imminence by looking at the unemployment rate alone.
With low unemployment you have more vacancies and with high unemployment you don't have very many vacanciesusually called a Beveridge curve.
That shifted out against us in the '70s and '80s and it seemed to accompany the rise in the apparent NAIRU [nonaccelerating inflation rate of unemployment] from 4 percent in the '50s and 60's to 6 or even more in the late '70s and early '80s. And there are other statistics which give the same answer.