Extraordinary Labor Market Developments and the 2022-23 Disinflation

From a new NBER working paper by Steven J. Davis: Two extraordinary U.S. labor market developments facilitated the sharp disinflation in 2022-23 without raising the unemployment rate. First, pandemic-driven infection worries and social distancing intentions caused a sizable drag on labor force participation that began to reverse in the first quarter of 2022, and perhaps […] The post Extraordinary Labor Market Developments and the 2022-23 Disinflation appeared first on Marginal REVOLUTION.