Is There a Pandemic in the Labor Market?

The conventional wisdom during the early stages of the pandemic and even through the summer of 2020 was how utterly devastating this was going to be to workers. At what point was it should have been clear that that wasn't true? So first of all, I want to make it clear. 2021 was more bottleneck in the supply curve increases in markups. That's what explains inflation in 2021. Then 2022, you have the big shock of the war, even if the price of oil had gone up even before, but there's a big shock ofthe war. You start to see wages increase and the last inflation report was so scary because you started to see significant increases in wages,. Even if these