Every academic discipline has dirty secrets. Those of economics include the fact that some of our best known principles are based on very thin data. The Phillips curve, which is relevant to much of ...

About a half-century ago, my investment and economic mentor, Bradford F. Story, remarked that leaders at the Federal Reserve and Treasury would never succeed until they disabused themselves of the ...

Federal Reserve Board watchers and economic commentators continue to emphasize reliance on the Phillips Curve, the theory that asserts that higher inflation leads to lower unemployment, and that ...

The Phillips curve suggests rising wages from low unemployment may increase inflation temporarily. High inflation may prompt Fed rate hikes, raising borrowing costs and wage demands. Despite ...

“Insanity is doing the same thing over and over again and expecting different results.” (Usually attributed to Albert Einstein, this familiar quote may have originated with Max Nordau or others in ...

Price rigidity is a key mechanism through which monetary policy is thought to affect the economy. When some prices are hard to change, firms may respond to a monetary impetus by changing instead their ...

The well-known Phillips curve describes inflation as a persistent process that depends on public expectations of future inflation and economic slack, a measure of how stretched the economy’s resources ...

If you want to be remembered in economics, get yourself a curve. There’s the Lorenz curve, the Laffer curve, the Kuznets curve, and, probably most famous, the Phillips curve. Phillips was A.W.

We believe that the effects of Covid on the economy and financial markets are diminishing, and we believe that the Phillips curve is supporting this. Will history repeat in the second half of this ...

In a policy paper, Olivier Blanchard of the Peterson Institute for International Economics finds that the Phillips curve is still valid. It’s just not as strong as it once was. “Inflation expectations ...