Why unemployment has risen. Expectations about inflation feed straight into inflation itself. We began this course by looking at three big indicators. The two charts from the first lecture are reproduced here, with one more, showing the relationship between the two variables. These unemployment figures are OECD standardised ones.
Unemployment is a flow as well as a stock .
Please note inflation is a continuing rise in prices , not a one-off change. Yes, but probably much less than people think. Inflation may also engender uncertainty but possibly not by very much except in hyperinflations. You have to distinguish one-off changes in the price level with a continuing increase in prices, inflation. But this isn't inflation.