The U.S. unemployment rate may need to rise almost twice its current level in order to control high inflation, according to a team of researchers from the International Monetary Fund (IMF).
The paper, co-authored by IMF economists Daniel Leigh and Prachi Mishra, said that the jobless rate would have to grow from 3.7 percent at the end of August to as high as 7.5 percent to reduce inflation.
Such a number would lead to the loss of about 6 million jobs.
Other researchers estimate that a more modest 5.3 percent unemployment rate would be needed to rein in inflation.
The IMF researchers said that after analyzing the behavior of the U.S. job market and inflation, the conclusion was that the Federal Reserve could not tame current inflation with a smaller cut to employment….