Real output and unit labor costs as predictors of inflation
Abstract: Granger-causality tests used here find that:  unit labor costs add no predictive power to inflation forecasts; and  the gap between actual and potential output does help predict inflation, but only in the short run.
File(s): File format is application/pdf https://fraser.stlouisfed.org/files/docs/publications/frbrichreview/rev_frbrich199007.pdf
Provider: Federal Reserve Bank of Richmond
Part of Series: Economic Review
Publication Date: 1990