Despite falling (and in some cases cyclically low) unemployment rates, wage gains are more modest now than a year ago. Central bankers are stumped by this mystery. Whatever happened to the Philips Curve, which showed a strong relationship between unemployment and wage/price inflation? At any rate, as long as wage gains remain modest, central bankers [...]
Tag: inflation
European Inflation Declines in March
The fall in March CPI inflation is welcome news to the ECB. The decline indicates that the recent rise in prices was fully the result of higher energy costs. This news will allow the ECB to remain on hold this year. Low inflation, a cyclical economic acceleration, and easy monetary conditions point to higher equity [...]