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Professor Lawrence White offers insights on the state of the job market and the mystery of low inflation in the US

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Excerpt from CNBC -- "We've had decreases in some crucial prices. That helps. But [low inflation] is a mystery. Labor costs are remaining low even though labor markets are in pretty good shape. 4.4% unemployment, that's back where we were in 2007. We've been below 5% unemployment now for over a year, and yet, labor costs are not going up, which would be an underlying cause for higher inflation. The Fed doesn't really understand it. Most academics don't understand why labor costs, why wages, aren't going up more rapidly."

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