Unemployment and Inflation Relationship Unveiled: Impact on Economic Stability
The study looked at how inflation and unemployment are related over time. They combined different ideas from past research to create a new model. They found that the NAIRU, a key concept in economics, changes a lot over time in the US, UK, Italy, and Spain. This is different from what other models usually show. They also found that looking back at past data is more important for predicting inflation than looking forward.