New Data from Federal Reserve Board Illuminate Findings in CDC and FDA [(Re-)Connecting Inflation and the Labor Market: a Tale of Two Curves]: CDC and FDA

2025 AUG 15 (NewsRx) -- By a News Reporter-Staff News Editor at CDC & FDA Daily -- Research findings on CDC and FDA are discussed in a new report. According to news reporting originating from Washington, District of Columbia, by NewsRx correspondents, research stated, “We propose an empirical framework in which shocks to worker reallocation, aggregate activity, and labor supply drive the joint dynamics of the labor market and inflation, and where reallocation shocks take two forms depending on whether they result from quits or from job losses.”

Our news editors obtained a quote from the research from Federal Reserve Board, “We find that these structural shocks, which affect the Beveridge curve, have different effects on inflation. Our model fully decomposes shifts of or along the empirical Beveridge curve in terms of the contribution of each shock and also allows us to estimate the Phillips correlation associated with each shock; observed Beveridge and Phillips correlations change over time depending on what types of structural shocks predominate in a given period.”

According to the news editors, the research concluded: “We find that reallocation shocks that accompany job losses were a key source of labor market dynamics and the steepening of the reduced-form Phillips curve during the Covid-19 pandemic, and were an important driver of the post-pandemic ‘soft landing..”

This research has been peer-reviewed.

For more information on this research see: (Re-)Connecting Inflation and the Labor Market: a Tale of Two Curves. Journal of Monetary Economics, 2025;153. Journal of Monetary Economics can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Monetary Economics - http://www.journals.elsevier.com/journal-of-monetary-economics/)

The news editors report that additional information may be obtained by contacting Hie Joo Ahn, Federal Reserve Board, Washington, DC 20551, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jmoneco.2025.103796. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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