vrijdag 15 november 2019

Phillips curve: Unemployment Vs. Inflation

The Phillips curve suggests there is an inverse relationship between inflation and unemployment.
In fact, I even believe that the unemployment rate is a leading indicator for inflation. (although the unemployment rate is regarded as a lagging indicator...)

When we look at 2019, the unemployment rate has been going down from 10% to 3%. Inflation is about to go higher because of the low unemployment rate.


Jim Rickards talks about the Phillips Curve:
https://www.youtube.com/watch?v=S_UhqAkG-KI&t=1910s


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