The Phillips curve predicts that when the unemployment rate drops, inflation will rise as businesses compete for scarce labor and drive up wages. The late William Phillips, a neo-Keynesian economist ...

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 ...

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 ...

Cookies and milk. Keith and Nicole. Jay-Z and Beyoncé. There are certain relationships that just seem to last. In the world of economics, it’s unemployment and inflation. Way back in 1958, economist ...

Alan Blinder notes that in the 1990s he and others at the Federal Reserve felt that they had a reasonable handle on the Phillips curve (“Is the Phillips Curve Dead? And Other Questions for the Fed,” ...

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 ...

During the early 1960s, many economists and policymakers believed that monetary policy could exploit a stable trade-off between the level of inflation and the unemployment rate. One version of the ...

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 ...

Economists and leaders on both sides of the aisle are debating if the Phillips curve, a theory which says that unemployment and inflation have an inverse relationship, applies to the US economy. When ...

The Phillips curve is a controversial economic model that monetary policy managers use to examine the relationship between inflation and unemployment. The model shows that wage inflation can lead to ...