Working Paper: Bad Jobs and Low Inflation

Working Paper - May 2020 - No. 155

Authors Faccini, Renato Maurizio Marco (Danmarks Nationalbank); Melosi, Leonardo (Federal Reserve Bank, Chicago)
Subject Inflation, wages and prices
Type Working paper
Year 2020
Published 18 May 2020
The low rate of inflation observed in the U.S. over the entire past decade is hard to reconcile with traditional measures of labor market slack. We show that an alternative notion of slack that encompasses workers' propensity to search on the job explains this missing inflation.