However the assumption on the surplus labour in the rural area and that of automatic employment for such labour from the agricultural sector, the quality of labour, notwithstanding, is unrealistic. The International-Dependence Revolution emphasizes the dependence of poor countries on their rich counterparts both with respect to financial aid and technical support.
On the other hand, today’s low sensitivity of inflation to slack, along with the limited ability to cut interest rates in a recession, means it can be more difficult to achieve our 2 percent inflation objective on a sustainable basis.