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Federalist: "They can not understand the Phelps curve"
The Phillips curve is the theory of its New Zealand economic position, William Phillips, which believes that inflation and the unemployment rate have an inverse relationship, that the decline in unemployment means higher inflation and vice versa.
Charles Evans, in an interview with CNBC on Wednesday, said that as unemployment fell, average wages in the economy should rise.
He said that although the unemployment rate has fallen to 4%, inflation has been declining for several months.
The core consumer price index (CPI) hit 1.8% in the 12-month period ending in October, after a sustained slowdown in recent months.
Evans said it was difficult to predict the reasons for the sudden decline in inflation despite the decline in unemployment.
At the same time, a member of the Fed stressed that he would not be worried in the event of high inflation, we know how to deal with him in reference to raising interest rates.
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A member of the Federal Reserve is not worried about the high inflation rate of their knowledge of how to deal with it 15 November 2017 06:01 PM
The Federal Reserve Bank of Chicago says one key economic model the Fed is struggling to understand is the Phelps curve.The Phillips curve is the theory of its New Zealand economic position, William Phillips, which believes that inflation and the unemployment rate have an inverse relationship, that the decline in unemployment means higher inflation and vice versa.
Charles Evans, in an interview with CNBC on Wednesday, said that as unemployment fell, average wages in the economy should rise.
He said that although the unemployment rate has fallen to 4%, inflation has been declining for several months.
The core consumer price index (CPI) hit 1.8% in the 12-month period ending in October, after a sustained slowdown in recent months.
Evans said it was difficult to predict the reasons for the sudden decline in inflation despite the decline in unemployment.
At the same time, a member of the Fed stressed that he would not be worried in the event of high inflation, we know how to deal with him in reference to raising interest rates.
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