Opinion: Why is inflation so low?
By Robert J. Samuelson Robert J. Samuelson Columnist focusing on economics Bio Columnist April 10 at 11:48 AM The Phillips Curve is dead; long live the Phillips Curve.
You may recall that Phillips refers to economist A.W. Phillips, whose 1958 landmark paper argued that there was a trade-off between unemployment and inflation: Lower unemployment generally produced higher inflation, and vice versa. Still, the basic logic remains relevant. As unemployment declined, upward pressures on wages and prices would intensify. This assumption is at the core of the Federal Reserve’s economic policymaking and is the main justification for raising interest rates when the economy improves. The Fed’s goal is to keep the economy growing without triggering higher inflation.
In their paper and blog post, Christopher G. Collins and Joseph E. Gagnon of the Peterson Institute find that “the relationship between inflation and unemployment has shifted.” But they don’t conclude that the change is permanent or irreversible. A continuing recovery could produce an unexpected rise in inflation, Gagnon said in an interview.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Opinion | Why voters are already revved up about 2020What voters care about and why so many hate President Trump.
Weiterlesen »
Why does Donald Trump hate wind? | OpinionThe irony of Trump’s weaponized stupidity is that it hurts rural communities and red states benefiting from wind power.
Weiterlesen »
Opinion | Why Congress should try again to override Trump’s vetoOpinion: Why Democrats should try again to override Trump’s veto
Weiterlesen »
Why Trump's approval ratings barely budge | OpinionTrump's approval rating barely seems to budge, come shutdown or come Mueller. Here's what the Democrats should learn from this ahead of 2020.
Weiterlesen »
Opinion | Why are Democrats helping Republicans do the bidding of the tax-prep industry?Opinion: Why are Democrats helping Republicans do the bidding of the tax-prep industry?
Weiterlesen »
Opinion | Why do we believe Americans spend too much money on coffee and avocado toast?Spending on Starbucks and other unnecessary luxury goods isn’t the real source of Americans' financial woes.
Weiterlesen »
Opinion | Why America Needs New AlliancesOpinion: The world can’t do without U.S. leadership, but the international order of the Cold War era no longer makes sense. Here’s a better approach, write yhazony and haivry.
Weiterlesen »
Opinion | Why listing Iran’s Revolutionary Guard as a terrorist organization is a bad ideaOpinion: Here’s why listing Iran’s Revolutionary Guard as a terrorist organization is a bad idea, JRezaian writes
Weiterlesen »
Opinion | Why Hondurans Flee for the U.S.Opinion: Instead of adding border guards, President Trump might want to pay more attention to increasing Honduran economic freedom, so migrants can stay in Central America, writes MaryAnastasiaOG
Weiterlesen »