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 ...

The Phillips curve essentially describes the relationship between wage inflation and unemployment as an inverse one, suggesting that reduced inflation accompanies rising unemployment. This principle ...

The Fed cut the Fed Funds rate by 50 basis points on September 18. The Fed’s twin mandate, keeping inflation under control and aiming for low unemployment is really in the service of the American ...

Economics is not a museum of immortal models. It is a diagnostic discipline whose tools must match the condition of the economy under examination. Dr Birupaksha Paul’s January 8 response to my earlier ...

Inflation has climbed since 2021, as the labor market has tightened. Two historical data relationships can account for elevated inflation over the past two years: the Beveridge curve, which relates ...

I am so glad you asked this great question! Indeed, many of us study economic theory in classrooms, and the Phillips curve is typically covered in a macroeconomics class. However, it is natural to ...

The Phillips curve describes an inverse correlation between inflation and unemployment. It says that as inflation rises, unemployment goes down, and vice versa. The curve got its name from a New ...