Episode notes
Episode Notes: Revisiting the Phillips Curve
Read more- Introduction:
- Overview of today's topic: The Phillips Curve.
- What it is: A model depicting the relationship between inflation and unemployment.
- Historical Perspective:
- Traditional View: An inverse relationship between inflation and unemployment. One rises as the other falls.
- Revolutionizing the Understanding:
- New Research: A dive into spectral analysis to examine this relationship on various time frequencies.
- Findings:
- Long run: High inflation correlates with high unemployment, defying traditional views.
- Intermediate run: High inflation tends to be a consequence of low unemployment.
- Evolution Over Time: ...