Phillips Curve Isn’t Broken, Insists Michael Ashton

The video discusses the Phillips Curve, a concept linking unemployment and wage changes, and its relevance to inflation. It explains that the Phillips Curve originally focused on wage rates in the UK, not overall inflation. The video highlights that low unemployment leads to higher wage changes, similar to supply-demand dynamics. The Atlanta Fed Wage Tracker is used to analyze wage trends, showing that wages rise as unemployment falls, although with a lag. The discussion emphasizes the importance of understanding these economic relationships.

Explain the relationship between unemployment and wage increases as discussed in the text.

What does the text suggest about the current state of wages in relation to unemployment?