Season 6 Episode 1 - A W "Bill" Phillips
Economics In Ten
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The Relationship Between Unemployment and Inflation
As labor markets tighten in economic terms, it becomes a seller's market. If you are unemployed and everyone else has got a job, you can bid up your own wages to the employer. And vice versa, if unemployment's high, then the employer doesn't have to bid for you with a particularly high wage. It's a natural rate about lower inflation will come to natural rate. You want lower inflation, you're going to have to accept higher unemployment. That's the sort of implication, that simple trade-off between those two. But there is an intuitive sense to the sort of statistical finding. In certain respects, even though he didn't necessarily make these intuitive leaps, it does make
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