The Lucas Critique Applied to Inflation Models
The Lucas critique explains why every major Phillips Curve breakdown since 1970 was predictable. Reduced-form inflation models inherit the policy...
Phillips Curve
Wage-Price Spirals: Theory, Evidence, 1970s vs 2022
Wage-price spirals require wage indexation, weak monetary anchors, and unanchored expectations. The 1970s satisfied all three; 2022 did not. The...
Friedman-Phelps Natural Rate Hypothesis: Why There Is No Long-Run Trade-Off
The natural rate hypothesis demonstrates why policymakers cannot permanently trade higher inflation for lower unemployment, as expectations adjustment yields a...
New Keynesian Phillips Curve: Sticky Prices and Inflation Dynamics
The new keynesian phillips curve links current inflation to expected future inflation and real marginal cost through optimising firms with...
The Phillips Curve: The Trade-Off Between Inflation and Unemployment (And Why It Keeps Breaking)
The Phillips Curve describes the inverse relationship between inflation and unemployment, but it has broken, reformed, and flattened over time....
Understanding the Key Curves in Macroeconomics
Unlock the secrets of macroeconomics with this guide to key curves like Phillips, Laffer, J, Kuznets, and Lorenz.
Explaining the Theory of the Phillips Curve
Phillips Curve: Learn about the inverse relationship between inflation and unemployment and how expectations can affect this relationship over time.