The Modern Phillips Curve RevisitedReport as inadecuate




The Modern Phillips Curve Revisited - Download this document for free, or read online. Document in PDF available to download.

The modern Phillips curve is about therelationship between the average rates of inflation and unemployment. We willprovide additional empirical evidence in the US economy from 1948:01 to 2013:03that helps demonstrate why such a relationship has been built on a wrongmethodology, as revealed in Ma 1. An erroneous approach can lead to a misunderstanding of businesscycles and a wrongful implementation of monetary policy. In particular, the wayhow the two rates may evolve is now at a critical moment for the Fed todecide if an exit from its quantitative easing should be initiated.

KEYWORDS

Phillips Curve; Business Cycle; Inflation; Unemployment

Cite this paper

Ma, J. 2014 The Modern Phillips Curve Revisited. Modern Economy, 5, 188-200. doi: 10.4236-me.2014.53020.





Author: Jinpeng Ma

Source: http://www.scirp.org/



DOWNLOAD PDF




Related documents