Inflation and unemployment--trends and outlook?

Question

Inflation and unemployment--trends and outlook?

Answer 1

Obviosly inflation will always be increasing - in economy governements tries to avoid periods of deflation using monetary tools, it is healthy to have annual inflation of 1~3% for merely growing economy.

Unemployment will always fluctuate around NAIRU, though natural rate may fall a bit due to improvements in human caital and labor markets.