There's a lot of very understandable confusion in this thread about the directionality of the unemployment-inflation tradeoff. It's not that increased employmen

There's a lot of very understandable confusion in this thread about the directionality of the unemployment-inflation tradeoff. It's not that increased employment causes inflation, but rather the idea is that inflation will increase if central banks try to get there by printing money. So the frequently used statement of "increased employment will cause inflation" should only be considered in the context of monetary policy. But the phrasing is unfortunate because it implies the wrong causality. https://en.wikipedia.org/wiki/Full_employment#The_NAIRU https://en.wikipedia.org/wiki/Full_employment#The_NAIRU