Phillips Curve

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A Phillips Curve is a temporal curve composed of Phillips rates for some economy and time period.



References

2019

2014a

  • (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Phillips_curve Retrieved:2014-3-22.
    • In economics, the Phillips curve is a historical inverse relationship between the rate of unemployment and the rate of inflation in an economy. Stated simply, lower unemployment in an economy is correlated with a higher rate of inflation.

      While there is a short run tradeoff between unemployment and inflation, it has not been observed in the long run.[1] Accordingly, the Phillips curve is now seen as too simplistic, with the unemployment rate supplanted by more accurate predictors of inflation based on velocity of money supply measures such as the MZM ("money zero maturity") velocity, [2] which is affected by unemployment in the short but not the long term.[3]

  1. Chang, R. (1997) "Is Low Unemployment Inflationary?" Federal Reserve Bank of Atlanta Economic Review 1Q97:4-13
  2. MZM velocity
  3. Oliver Hossfeld (2010) "US Money Demand, Monetary Overhang, and Inflation Prediction" International Network for Economic Research working paper no. 2010.4

2014b

2011