Repeat after me, class: Growth does NOT cause inflation. Write it on the blackboard 100 times. For decades, the economics profession has been trying to tell us all just the opposite. They keep ...

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 essentially describes the relationship between wage inflation and unemployment as an inverse one, suggesting that reduced inflation accompanies rising unemployment. This principle ...

The link between changes in U.S. inflation and the output gap has weakened in recent decades. Over the same time, a positive link between the level of inflation and the output gap has emerged, ...

Monetary policy is often regarded as having only temporary effects on the economy, moderating the expansions and contractions that make up the business cycle. However, it is possible for monetary ...

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 ...