The real test for central banks is not exactly an interim unemployment rate “target”, but broader assessments of labour demand relative to available supply. The latter will ultimately determine wage and salary inflation, while informing on wider inflation mandates. Europe seems miles away from any pressure on this front, the UK and US might have to confront this sooner than expected, while New Zealand is surely leading the charge. But you wouldn’t know from comparing New Zealand’s jobless rate to that of the United States, the United Kingdom, or Germany
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