Some central banks, slow to grasp the effect of these structural changes on inflation and monetary policy, have been running overly loose policies that have fuelled unsustainable booms in America and some other economies.
RU's apparent fall during the 1990s has been caused by temporary inflation-dampening factors or lasting structural changes.
Inflation does nothing to alter the structural issues that cause unemployment.
So America has not suppressed inflation in prices by means of a structural improvement in the labour market.
As Lawrence Brainard of Bankers Trust has said, the IMF and the World Bank will likely be ineffective in Poland because they do not attack structural defects, only the economic symptoms such as inflation, subsidies, and deficits.
Cembalest points out three main risks: inflation, how consumption is financed, and structural impediments to growth.
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Even if European unemployment can fall to, say, 8% before triggering inflation, that is still much higher than America's structural jobless rate, which may be as low as 5%.
Instead, the oil inflation of 2011 was widely believed to reflect a long-term structural increase in demand from China and other developing economies running into the inexorable limit of a global oil supply that is at or near its geological peak.
He believes that worldwide structural changes (increased mobility of capital and labour, the greater credibility of central bankers as inflation-fighters, the preference of ageing baby-boomers for fixed-income securities) have altered the equation, and that top-quality bond yields are, if anything, headed down.
But his refusal to countenance structural reform of any sort would surely make it harder for him to persuade Mrs Merkel to tolerate more inflation or consider some form of debt mutualisation.
This is a serious structural issue with the way that the European monetary system was constructed: the ECB is tasked only with guarding inflation, and not with ensuring the health of the banking system.
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