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by hogFeast 2409 days ago
For context: this idea is basically a fetish amongst those around Corbyn.

Danny Blanchflower was, at one point, influential amongst the Corbyn crowd. Around 2013-15, he made a prediction that wage growth wouldn't rise as unemployment fell. This was true for a while...until 2015, and wage growth was nearly 4% a few quarters ago.

The idea that high employment won't cause wage growth is something that you will, however, hear repeatedly from Corbynites.

Btw, economists, unlike the author, tend to be quite sensible on the Phillips curve and understand that the relationship varies.