Whether looking at what Santa could be earning or a typical U.S. worker, wage growth is not as high as they would like it to be.
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.
The monetary policy dilemma is when to take the punchbowl away after the party gets going. In other words, have jobs recovered enough to raise rates?
This was fun! A 5 minute Federal Reserve simulation lets you target the fed funds rate for 16 hypothetical quarters and then watch the inflation and unemployment impact. It all appears manageable until a surprise news headline appears. The site…