Journal Article

Real output and unit labor costs as predictors of inflation

Abstract: Granger-causality tests used here find that: [1] unit labor costs add no predictive power to inflation forecasts; and [2] the gap between actual and potential output does help predict inflation, but only in the short run.

Keywords: Wages; Inflation (Finance); Forecasting;

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Economic Review

Publication Date: 1990

Volume: 76

Issue: Jul

Pages: 31-39