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 ...

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 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 ...

During the early 1960s, many economists and policymakers believed that monetary policy could exploit a stable trade-off between the level of inflation and the unemployment rate. One version of the ...

This paper uses the short-run restrictions implied by a simple aggregate demand-aggregate supply model as an aid in identifying structural shocks. Combined with the Blanchard-Quah restriction, it ...

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 is a controversial economic model that monetary policy managers use to examine the relationship between inflation and unemployment. The model shows that wage inflation can lead to ...

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 ...