> All we can conclude is that the EU unemployment rate to wage increase function is not the same as the US function If the difference between the outputs has h

> All we can conclude is that the EU unemployment rate to wage increase function is not the same as the US function If the difference between the outputs has held steady over time...which I dont think is the case. Start adding other variables into the equation and I have no doubt you can make it work. I also have little confidence in the predictive power of the resulting functions. I dont think unemployment is UNRELATED to wages, but it seems obvious that the straightforward econ 101 equation has been broken by some factor. I'd rather see people try to figure out what is really going on than assuming the broken equation must actually be right, we just need to depend on it MORE. One of the primary tasks of a govt is stability, but the recent US trend has been focused on short term stability over long term. I've seen a few (different) theories for what is going on (and am far too ignorant to have a clue myself), but I've not seen ACTION indicationing any concerns are being seropusly considered. I'm sure a chunk of the Fed is concerned, but what are we doing to bleed off the inequality pressure?