The Phillips curve essentially describes the relationship between wage inflation and unemployment as an inverse one, suggesting that reduced inflation accompanies rising unemployment. This principle ...

We got another labor market indicator on Wednesday ahead of Friday’s jobs report. According to ADP, the private sector added 152,000 jobs in May. That’s fewer than were added in April, so a bit of a ...

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 ...

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 ...

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 ...

Government has no resources. It can only spend what it’s taken from us first. Yet Keynesian economists (meaning the vast majority of economists) believe government spending boosts economic growth.

The Fed’s masterful use of the Phillips curve to adjust interest rates in the 1990s may have been “a stopped clock is right twice a day” phenomenon. Alan Blinder notes that in the 1990s he and others ...

A fundamental relationship of mainstream economic theory at the heart of the Federal Reserve’s strategy for setting interest rates has been a poor guide for policy makers for at least three decades, ...

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 ...