Goldman: Letting the Economy Run Hot Is No Panacea for Participation

Unclear that the recent participation gains have been driven by cyclical factors.
Photographer: Pete Marovich/Bloomberg
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What are the potential gains from letting the economy run hot?

That's the question on every economist's mind right now after Federal Reserve Chair Janet Yellen managed, in a footnote of her recent speech, to elevate a fundamental question about the influence of aggregate demand on potential supply.