Most economists maintain that the labor market in the United States (and elsewhere) is tight because unemployment rates … are low and the Beveridge Curve (the vacancies-to-unemployment ratio) is high. They infer from this that there is … potential for wage-push inflation. However, real wages are falling rapidly at present and, prior to that, real wages had been …

Central bankers are raising interest rates on the assumption that wage-push inflation may lead to stagflation. This is … not the case. Although unemployment is low, the labor market is not 'tight'. On the contrary, we show that what matters …

inflation. Among other things, the unemployment gap, which is the difference between unemployment rate and non …-accelerating inflation rate of unemployment (NAIRU), is used to measure inflationary pressure from the labour market. This paper examines … revisional property of the NAIRU is also examined, as well as the forecast capacity of the unemployment gap with regard to wages …

This volume challenges the view that unemployment is exclusively determined by structural characteristics of the labour …

higher wages. This increases firms' incentives to post more vacancies, which makes unemployment volatile and sensitive to … aggregate shocks. The model is robust to two major criticisms of existing theories of sluggish wages and volatile unemployment … explains 70% of unemployment volatility …