Is high unemployment inevitable?

Source: EconLog
by Scott Sumner

“It’s true that unemployment often rises during periods when the rate of inflation is brought down. But the higher unemployment is not directly caused by lower inflation (that would be reasoning from a price change.) It depends why the inflation rate has declined. The real problem is not lower price inflation; high unemployment is more closely linked to a decline in NGDP growth, or a decline in wage inflation, or a decline in inflation expectations.” (07/25/22)