Inflation expectations matter more than unemployment

Inflation expectations have become more important than unemployment as a measure for predicting inflation outcomes

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In this article

  • Relationship between unemployment and inflation
  • Phillips curve
  • 'Expectations-augmented' curve
  • Explanations for a flatter curve
  • Structural factors
  • Measuring economic slack
  • Impact of monetary policy
  • Expectations and globalisation

What is this?

This article is from the Oxford Analytica Daily Brief, which analyses geopolitical, economic, social, business and industrial developments on a global and regional basis, providing clients with timely, authoritative analysis every business day of the year. Find out more about the Oxford Analytica Daily Brief, or request a trial.