Markets Await Possible Fed Pause, Recession
Bloomberg Businessweek
00:00
The Economic Connection Between Wage Growth and Consumer Price Inflation
The San Francisco Fed says wage inflation is not important for consumer price inflation. That rips up page one in the economic textbook, which says that when you have higher cost of production through higher labor costs, then you should also see higher prices. The issue with that paper and the issue with that approach is that that's a statistical correlation where the author basically finds that the correlation between wage inflation and consumer price inflation isBasically very low, only 0.1%.
Play episode from 05:01
Transcript
