Wages and Inflation: A Mystery

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 will have an excuse for normalising interest rates at a very modest pace.  A support for equity markets!