That the low unemployment rate has not been accompanied by high inflation, and higher interest rates, has caused many to question whether the Phillips curve still works. The 20% + dividend yields from ...

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 ...

Following ideas in Hume, monetary shocks are embedded in the Lagos-Wright model in a new way: There are only nominal shocks accomplished by individual transfers that are sufficiently noisy so that ...

The Calvo pricing model that lies at the heart of many New Keynesian business cycle models has been roundly criticized for being inconsistent both with time series data on inflation and with ...

Although the labor market has steadily strengthened, wage growth has remained slow in recent years. This raises the question of whether the wage Phillips curve—the traditional relationship between ...

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 ...

The Phillips curve suggests a short-term inverse relationship between inflation and unemployment. Critics argue the model fails in the long term, evidenced by various Nobel criticisms. Investors ...