I am writing several formal academic papers at present with various presentations coming up as the target and so blogs in the near future might reflect that sort of mission. Today I present some results of some work I am doing with my co-author Joan Muysken, which stems in part from theoretical work we outlined in our 2008 book – Full Employment abandoned. The current work formalises the influence of unemployment duration and underemployment on the inflation process. Initially, we are focusing on Australia (for a December presentation) but the scope of the work will generalise to a broader OECD dataset. A motivation is that underemployment has became an increasingly significant component of labour underutilisation in many nations over the last two decades. In some nations, such as Australia, the rise in underemployment outstripped the fall in official unemployment in the period leading up to the financial crisis. Underemployment is now higher than unemployment in Australia. There is now excellent data available for underemployment from national statistical agencies, which makes it easier to examine its macroeconomic impacts.