One of things that has investors’ attention at the moment is the fact that capacity utilization is so low while the employment rate is so high. What might this imply with respect to economic activity and potential inflation? In this week’s Economics Weekly, we take a closer look at capacity utilization and what it might, or might not, be telling us with respect to output and inflationary pressures.
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Richard de Chazal, CFA is a London-based macroeconomist covering the U.S. economy and financial markets.