Do Labor Market Activities Help Predict Inflation?
12 Pages Posted: 10 Aug 2010
Date Written: May 1, 2010
The authors conduct an empirical analysis of the role of labor market activities in inflation and conclude that wage growth is not very informative for predicting price inflation. But price inflation does seem to help predict wage growth.
Keywords: unit labor costs, inflation, unemployment, Phillips curve, Price Level, Inflation, Deflation, Business Fluctuations, Cycles
JEL Classification: E31, E32
Suggested Citation: Suggested Citation