the current post-pandemic situation does not fit the standard models

What is most striking about this slowing wage growth is that it is completely out of line with the predictions of standard macroeconomic models. Wage growth should not be slowing when the unemployment rate is below 4.0 percent. The fact that we are seeing a sharp slowing of wage growth, even when the unemployment rate is near its half-century low, indicates that the current post-pandemic situation does not fit the standard models.

The Fed Should Not Allow Itself to Get Bullied into Bringing on a Recession, CEPR

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