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 ...

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 ...

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 ...

I must say that it is discouraging how often I have to write about the Phillips Curve. The Phillips Curve is a very simple idea and a very powerful model. It simply says that when labor is in short ...