With the jobs numbers out today, we’ve been hearing a lot about this thing called the Phillips Curve. What is the Phillips Curve? It’s a theory, developed by an economist called A.W.H. Phillips, that ...

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 ...

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 ...