Because a Covid-19 basket of goods and services has a different inflation rate from the CPI basket, the cost of living might not be what we think it is.
This week’s economic news summary includes the diner’s dilemma and marginal analysis, property rights in outer space, the Phillip’s Curve and unemployment.
Showing the connection between inflation and unemployment, the Phillips Curve has been re-interpreted, re-affirmed and condemned as a monetary policy tool.
As the source of monetary policy, the Federal Reserve has to decide if interest rates should rise when inflation is low but a jobs recovery has begun.
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