Put to the test in the past two years, the idea of a “natural” rate of unemployment has failed. There’s no need to push unemployment up to any particular rate to bring down inflation.
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Articles on Phillips curve
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Some commentary suggests a causal relationship between hiking interest rates and unemployment increasing. It’s not quite that simple, but the days of record high employment are probably numbered.
Debate is raging about whether the recent burst of inflation is temporary or here to stay.
