Economics

Why Does Low Unemployment Often Lead To Inflation?

The Phillips curve shows that historically, inflation and unemployment have had an inverse connection. High unemployment is associated with lower inflation or even deflation, whereas low unemployment is associated with lower inflation or even deflation. This relationship makes sense from a logical standpoint. When unemployment is low, more people have extra money to spend on […]

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How Does Raising Minimum Wage Cause Inflation?

As inflation reaches historic highs, lawmakers and analysts are debating the causes, which include pandemic-related shocks as well as government-imposed limitations and swings in consumer demand. One New York Times writer remarked this week on Twitter that recent media headlines about inflation are “all hype.” “Policies like the $15 minimum wage” are blamed by “wealthy

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Will Inflation Last?

As long as businesses struggle to keep up with consumer demand for products and services, high consumer price inflation is likely to persist. Many Americans can continue to indulge on everything from lawn furniture to electronics thanks to a strengthening job market, which generated a record 6.7 million positions last year and 467,000 more in

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