What the Fed Can Learn From Canada's Economy

The video explores the relationship between employment and inflation, focusing on Canada's labor market. It questions traditional measures like the unemployment rate and suggests the prime age employment to population ratio as a better indicator. The discussion highlights the lack of inflation despite tight labor markets in Canada, challenging the Phillips curve model. It also examines the inconsistencies in unemployment data and suggests focusing on employment growth rates to understand inflation dynamics.

How does the current employment situation in Canada compare to historical trends?

What are the implications of not seeing wage and price acceleration despite low unemployment?

What is the significance of the prime age employment rate in understanding unemployment?

Why might traditional measures of unemployment be inadequate according to the text?

What alternative approach is suggested for analyzing inflation dynamics in relation to employment?