Inflation vs Jobs The Curved Tradeoff

The Reserve Bank is prioritizing inflation control over job losses, even as unemployment stays stubbornly low. Governor Michele Bullock warns that high prices hurt everyone, especially those on tight budgets. The traditional link between inflation and unemployment — often shown as a straight line — is actually a curve, and we’re currently on a steeper part, meaning rate hikes may not push unemployment up as expected. That’s why unemployment dipped to 4.4% despite hikes — a sign the economy’s behaving differently than models predict. Understanding this curve is crucial: the RBA must tread carefully to cool prices without triggering avoidable job losses. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/e16a9dfcad4b106b