Powell’s Reading List: Sahm’s Rule, Mankiw’s Guesses, and Dornbusch’s Echo from the Past ‘I Told You So’ | The Market Monetarist
On Friday we got the U.S. labour market report for July. Employment growth and wage growth continue to decelerate, and most notably, the unemployment rate rose to 4.3% in July, up from 4.1% in June. This increase has triggered a "recession alarm" — at least if one subscribes to the so-called Sahm Rule. Understanding the…