The whole thing just shows how absolutely lost and rudderless people get when trying to assume a non-Phillips Curve world
PRODUCTIVITY! | "This note argues that these factors, especially slower productivity growth and lower natural rates of unemployment, can explain much of the weakness of wage growth and the apparent breakdown of the simple wage Phillips curve."
Our blog takes a look at the Phillips curve, which refers to an inverse relationship between unemployment and inflation
After asking Powell why the Fed has so consistently gotten the natural rate of unemployment wrong in the same direction, @Ocasio2018 follows-up by discussing the breakdown of the Phillips Curve, and the idea that unemployment could be much lower without inflationary worries.
For more on how economists are taking a serious, critical reexamination of the Phillips Curve and the idea of NAIRU, see this:
The death of the Phillips curve in one chart: While unemployment rate in the Eurozone has dropped to 7.8% in Jan, the lowest since Sep2008, core inflation has also fallen, contrary to the theory of the Phillips curve.
Inflation v. unemployment for 31-countries, and by jingo, it's hard to see a Phillips Curve.
Central banker on the left believes in tooth fairies, unicorns and a Phillips Curve. Central banker on the right just bought 16 tons of gold