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 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 ...

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 ...

During the 1970s and early 1980s, rises in inflation tended to coincide with weaker economic activity and lower stock prices. But in more recent decades, rises in inflation have tended to coincide ...

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 business cycle is alive and well, and real variables respond to it more or less as they always did. Witness the Great Recession. Inflation, in contrast, has gone quiescent. This paper studies 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 ...