economy

In ‘Strange Twist Of Fate’, Cheshire Cat Smiles Just As Phillips Curve Is Left For Dead

"The Phillips curve now is fully 'alive', only to be half-ignored".

"The Phillips curve now is fully 'alive', only to be half-ignored".
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3 comments on “In ‘Strange Twist Of Fate’, Cheshire Cat Smiles Just As Phillips Curve Is Left For Dead

  1. Anonymous

    An isotopic time Philips model is a fairly common thing. But one would have a hard time gleaning policy from it.

  2. The Phillips Curve should also depend on the openness of the economy. Imagine (thought experiment) a country A where virtually all goods and services are freely imported from country B and country B can produce any arbitrary amount of such without affecting the cost of same. How would change in wages paid to country A’s workers relate to consumer prices in country A?

  3. I don’t understand how Powell could dismiss the Philips curve so flippantly. It makes so much sense that wage inflation will eventually kick up. Where does he think the economy goes from there? Left and up forever?

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