By Frank Shostak
On July 11, 2019, before the Senate Banking Committee, the Federal Reserve Board Chairman Jerome Powell said that the relationship between unemployment and inflation in the US has vanished. According to Powell,
The relationship between the slack in the economy or unemployment and inflation was a strong one 50 years ago ... and has gone away," … the strong tie between unemployment and inflation was broken at least 20 years ago and the relationship "has become weaker and weaker and weaker."
It is a well-known belief that by means of monetary