Preston Mui earned his doctorate in economics from the University of California, Berkeley, just last year, but he’s already making waves.
Mui wrote that economists and policymakers are making too much of one widely followed statistic: the unit labor cost, which is supposed to represent how much business has to spend for labor to produce one unit of output.
Rising unit labor costs are said to contribute to inflation.
In a June 15 news conference, Lagarde cited unit labor costs five times.
When asked why the central bank had revised its inflation expectations upward, she said, “The large part of it is the unit labor cost.”
Persons:
Preston Mui, he’s, Mui, ”, Lawrence Summers, Jason Furman, Christine Lagarde, Lagarde
Organizations:
University of California, Harvard, European Central Bank
Locations:
Berkeley, America