Evolving dynamics of the relationship between US core inflation and unemployment

Bluford H. Putnam and Samantha Azzarello

Review of Financial Economics, 2015, vol. 25, issue C, 27-34

Abstract: Labor market dynamics in the US are changing due to long-term factors including decelerating labor force growth, rising age of the labor force, and the rapid advance of e-commerce, as well as the one-time downward adjustment during 2009–2013 of the size of state and local government work forces. We discuss some of the controversies revolving around how to analyze labor markets in this dynamic environment from the perspective of monetary policymaking, given the dual mandate of the Federal Reserve to encourage both full employment and price stability.

Keywords: Dual mandate; Federal Reserve; Inflation; Employment; Unemployment (search for similar items in EconPapers)
JEL-codes: E40 E43 E52 E61 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:revfin:v:25:y:2015:i:c:p:27-34

DOI: 10.1016/j.rfe.2015.02.002

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