Ah, the good life!

Fed forecasts inflation, unemployment
By JEANNINE AVERSA, AP Economics Writer
20 Feb 2008
WASHINGTON - The Federal Reserve on Wednesday lowered its projection for economic growth this year, citing damage from the double blows of a housing slump and credit crunch. It said it also expects higher unemployment and inflation.

Note: a more complete headline would read, "Fed forecasts inflation, unemployment, and slower growth."

Time was - back when I took my one and only college economics class, economic theory held that inflation & unemployment were disjoint, mutually exclusive problems. About the time I was taking the class - early 1970s - reality intervened, and the country experienced both joys simultaneously. I suspect economic theory has since been revised to account for this nasty possibility.