The Fed may not be able to find a solution quickly due to a division among participants over the natural rateof unemployment and how flexible the FOMC should be with its inflation target, Nomura said.
Given the central role of rising health care expenditures, any solution to our long-run budget problem will simply have to include slowing the growth rateof health care costs.
The solution the president favours is fixing the value of the rupiah to the dollar at a rateof 5, 000-5, 500 by means of a currency board, as in Hong Kong or Argentina.