(Note: A flat Phillips curve implies that high employment levels should have virtually no impact on inflation). As you can see, back in the 1990s, a 1% drop in the unemployment rate led to a 0.6 0.7% increase in inflation. Nowadays, inflation is virtually unaffected by the high level of overall employment that the Americans currently enjoy.
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Mr Gallagher is not the only person who thinks the Dutch face an uphill task this evening. In his tactical analysis of the final, Lee Dixon feels they could actually do with having another couple of holding midfielders sitting in front of their back four making four in all. How about the Oranje chances of creating chances themselves? “Basically, every time I look at a possible way that the Dutch might threaten, I look at Spain and think that I cannot really see them allowing them to do that.
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