BEFORE IT'S NEWS - Unemployment is low, the stock market is booming, and the economy continues to grow.
"I don't think the way to think about price inflation is to look and see what the unemployment rate is," argues Robert Murphy, research assistant professor at the Free Market Institute at Texas Tech University and senior fellow at the free-market Mises Institute. "Yes, you can see correlations, but it's not that the unemployment rate causes price inflation. It misleads people."
Does this mean that there's nothing to worry about? Far from it. The Federal Reserve's policy of artificially holding down interest rates is the real problem.