Based on the Bloomberg story from the American Economic Association meetings:
The International Monetary Fund’s former chief economist saw what he called “suggestive” evidence that policy makers might be able to push joblessness below what is seen as its natural rate without risking higher inflation.
So what does that mean for the Fed? “There is a decent case” it should overheat the economy and try to attract more people into the labor force, said Blanchard, now a senior fellow at the Peterson Institute for International Economics in Washington. [Link]
Where do financial markets and bubbles figure in all this? Jobs that created in the real economy because monetary policy keeps nominal and real rates too low (well below where they should be, for investors to be mindful of both risks and return) would be lost when the bubbles burst either because monetary policy eventually reverses or due to any other reason.