here is the rub.
If we really think there is no relationship between unemployment and inflation,
why on earth are we not trying to get unemployment below 4%?
We know that the government could, by spending more,
raise demand and reduce unemployment.
And why would we ever raise interest rates above their lower bound?
FIRST LET'S REWRITE
IF THERE IS NO RELATIONSHIP BETWEEN VARIOUS PRODUCT PRICE CHANGES
AND THE CONDITIONS ON CORRESPONDING JOB MARKETS .......
NOW JOB MARKETS IS A VERY DIFFERENT BUNCH OF CRITTER FROM UNEMPLOYMENT SCALARS
OR EVEN UE VECTORS
FOCUS ON MODELING JOB MARKETS ADEQUATELY
NOT ON SHORT CUT CORRELATIONS BETWEEN UE and product price inflation !