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 ...

Every academic discipline has dirty secrets. Those of economics include the fact that some of our best known principles are based on very thin data. The Phillips curve, which is relevant to much of ...

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 ...

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 Fed cut the Fed Funds rate by 50 basis points on September 18. The Fed’s twin mandate, keeping inflation under control and aiming for low unemployment is really in the service of the American ...

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.

Price rigidity is a key mechanism through which monetary policy is thought to affect the economy. When some prices are hard to change, firms may respond to a monetary impetus by changing instead their ...

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 ...

What is the Phillips curve? What is the Phillips curve? The Phillips curve is a model that attempts to show the relationship between inflation and unemployment. Central bankers who are responsible for ...

The well-known Phillips curve describes inflation as a persistent process that depends on public expectations of future inflation and economic slack, a measure of how stretched the economy’s resources ...

If you want to be remembered in economics, get yourself a curve. There’s the Lorenz curve, the Laffer curve, the Kuznets curve, and, probably most famous, the Phillips curve. Phillips was A.W.