Missing pay rises: the ever deepening economics mystery | Larry Elliott

Economics is gripped by its own mystery drama: why are central banks setting interest rates on the basis of a seemingly broken economic model?

As mysteries go, it doesn't rank with Murder on the Orient Express or the identity of Gerald the mole in Tinker Tailor Soldier Spy but the economics profession is currently gripped by its own drama.

This story won't make it to the silver screen with starring roles for Kenneth Branagh or Judi Dench, but a lot depends on how it ends. For central banks, in particular, the question of Who Killed the Phillips Curve? is a nail-biter. They badly want to know how it ends.

Inflation is when prices rise. Deflation is the opposite - price decreases over time - but inflation is far more common.

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Related: Struggling Brexit Britain can barely afford this rise in rates