Diuretic
Permanently confused
Sorry, Duiretic, but this is simply not correct. High demand for labour is fine if wages are in line with the productive capacity of the economy. For example, if the clearing wage in the economy is $15 and the actual wage is $20, then there will be higher unemployment, regardless of the demand for labour. And if productivity growth is high, wages can rise very rapidly and not create any inflation at all.
That's not fair Toro, you're using facts.
I was thinking of the situation here where our reserve bank looks like raising interests rates again to try to combat inflationary pressures arising out of the capacity constraints caused by the negligence of the previous government.
No worries, I stand corrected.