High Inflation Leads to Temporary Spike in Unemployment Rates
The article discusses how high unemployment and inflation can happen at the same time. It explains the Phillips curve, which shows the link between price changes and unemployment rates. Trying to reduce inflation can temporarily increase unemployment. Returning to stable prices after inflation will lead to higher-than-normal unemployment. A steady approach to policy can eventually reduce inflation, but it might take 6-24 months to see results.