US unemployment or inflation will worsen if vacancies do not fall – study
Research says “last mile” in tackling inflation will depend on developments in labour market
Banque de France research claims that a fall in job vacancies in the US would lead to further disinflation without leading to any significant increase in unemployment. However, the authors also find that if vacancies remain at their current levels, the Federal Reserve will not be able to meet its 2.5% inflation target unless unemployment also rose to 7.3% from its current level of 4.1%.
The authors, Nicolas Châtelais and Annabelle De Gaye, say that “the ‘last mile’ in bringing inflation back to
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