Blanchflower: No Evidence of U.K. Wage Growth Picking Up

The video discusses the current state of inflation forecasts, highlighting concerns about potential risks and the stability of inflation expectations. It examines the unemployment rate, suggesting that there is more slack in the labor market than previously thought, and critiques the accuracy of wage growth predictions. The discussion extends to the US labor market, where it is argued that there is significant slack, contrary to the Fed's assessment, and that productivity growth remains low.

What was the main concern of policymakers regarding inflation as discussed in the first section?

• Stagnant inflation rates

• Deflation risks

• Inflation below 1%

• Inflation exceeding 2% mandate

In the context of the labor market, what is meant by 'slack'?

• Excessive job openings

• Underutilization of labor resources

• High unemployment rates

• Rapid wage growth

What is the revised natural rate of unemployment according to the discussion in the second section?

• 3.5%

• 4.5%

• 5%

• 6%

What does Donald Trump believe about the measurement of unemployment in the US?

• It is measured correctly

• It is overestimated

• It is irrelevant

• It is underestimated

According to the third section, what is the state of wage growth in the US?

• Stable

• Decreasing

• Non-existent

• Rapidly increasing