I have been somewhat pessimistic about the pace of the recovery that appears to be underway, particularly for labor markets, mainly because I don’t want policymakers to believe their job is done before it actually is (though they apparently came to that conclusion anyway).
I hadn’t looked at this for awhile — should I interpret the return of the inventory-sales ratio to near normal levels as good news?:
Here’s a graph of inventories, which appear to have stabilized:
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