Phillips Curve

Macroeconomics

The Phillips Curve

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24/11/2014

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William Phillips, a New Zealand born economist, wrote a paper in 1958 titled The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 18611957, which was published in the quarterly journal Economica. In the paper Phillips describes how he observed an inverse relationship between money wage changes and unemployment in the British economy over the period examined.

Wikipedia

Table of contents

Theory ................................................................................................................................... 2 Exceptions to the Phillips Curve rule ..................................................................................... 3 Stagflation of the 70s ......................................................................................................... 3 Definition ........................................................................................................................ 3 What causes stagflation ................................................................................................. 3 Stagflation of the 70s ...................................................................................................... 3 Opposite situation in the 1990s .......................................................................................... 3 Long Run Phillips Curve ........................................................................................................ 4 What really happened?.......................................................................................................... 4 Why does the curve tend to be horizontal? ............................................................................ 5 Linkography........................................................................................................................... 6 A step further...