"Will tight labour markets in the US contribute to growing inflation? This is a growing concern among a handful of economists and commentators. Last week, the Wall Street Journal fretted that there is a risk of ‘a tight labour market, with demand for workers far outstripping the supply, generat[ing] wage growth that keeps inflation above the Fed’s 2% target.’
At the centre of this problem is the labour market dynamics represented in the Phillips curve."....