This book investigates the complex relationship between labor markets, employment levels, and inflationary pressures within an economy. Martin Neil Baily, drawing on economic theory and data available in the early 1980s, examines how shifts in job availability and worker participation influence price stability. The work aims to provide a framework for understanding how policy decisions impacting employment can inadvertently affect inflation rates.

This work is recognized as a contribution to the economic literature on labor and inflation from the early 1980s. It is likely to be of interest to economists and students specializing in macroeconomic policy and labor market dynamics. The analysis reflects the economic conditions and theoretical understandings prevalent at the time of its publication.