The Phillips Curve

 

  1. What Phillips Observed
    1. Inflation and Unemployment Inversely Related
    2. Apparent Tradeoff between Them
  2. What Happened?
  3. The Phillips Curve as Now Understood
    1. Expectations Augmented
    2. Relation to SRAS
  4. Theories of Expectations
    1. Adaptive
    2. Rational
  5. Implications for Policy