I have a bunch of meetings this morning — you know how those go. That will give me a chance to think about these graphs:
This is a graph of PCE core year-over-year inflation versus unemployment since 2007 (the scatterplot with headline rather than core PCE is a noisier version of this, but the basic pattern remains):
The same graph since 2008 eliminates many of the observations in the upper left part of the graph:
And, since 2009:
This post was originally published at Economist’s View and is reproduced here with permission.