Strong US labour market results – further evidence that mainstream monetary theory is flawed

Created
Mon, 06/02/2023 - 12:20
Updated
Mon, 06/02/2023 - 12:20
Well, things are getting interesting in the US. The Federal Reserve started hiking interest rates in April 2022 and its decisions are underpinned by an theoretical framework that suggests the unemployment rate is above what it thinks is the natural rate (the rate where inflation is stable). So the rate hikes are meant to slow…