The rates of unemployment and inflation aren’t always inversely correlated, as the Phillips Curve model posits. Historically, they have often been; in recent times, not so much. The problem with the model is that it doesn’t account for the effects of productivity growth on price inflation. … The high rates of goods inflation experienced after the pandemic proved to be transitory, as we had anticipated. Services inflation has been more persistent but is moderating too. Pulling both down are assorted disinflationary forces. … Consumer sentiment fell in early June. We’re not sure why exactly but suggest some possibilities related to inflation, the labor market, and the uninspiring presidential race options.
❇️
Exclusive Early Access for Paid Members: Below, you'll find Dr. Ed's latest webcast. Paid members can enjoy immediate access to the video. This content will become available to the public at a later date—don't miss out on early insights, consider upgrading today!
