Economic Insights: The Phillips Curve: flatter, kinked but not "dead"

The Phillips Curve, which says that as the unemployment rate falls, nominal wages will rise, is making a comeback. Many labour markets are beyond full employment and wage inflation is set to rise. It may spike in an overheating risk scenario. Non-life insurers, most notably in casualty lines, can expect increased claims severity. In life, demand for new business may fall.

Economic Insights

Economic Insights: The Phillips Curve: flatter, kinked but not "dead"