Phillips curve framework

E48746

concept in macroeconomics economic theory macroeconomic framework

The Phillips curve framework is a macroeconomic concept that posits an inverse relationship between inflation and unemployment, shaping policymakers’ understanding of inflation dynamics and trade-offs in the postwar era.

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Observed surface forms (4)

Surface form	Occurrences
New Keynesian Phillips curve	1
Phillips curve	1
accelerationist Phillips curve	1
expectations-augmented Phillips curve by Milton Friedman	1

Statements (49)

Predicate	Object
instanceOf	concept in macroeconomics ⓘ economic theory ⓘ macroeconomic framework ⓘ
appliesTo	short-run inflation-unemployment trade-off ⓘ
associatedWith	A. W. Phillips ⓘ
assumes	imperfect adjustment of expectations ⓘ short-run nominal rigidities ⓘ
basedOn	empirical relationship between inflation and unemployment ⓘ
contrastsWith	classical view of money neutrality in the long run ⓘ
coreIdea	higher unemployment is associated with lower inflation in the short run ⓘ lower unemployment is associated with higher inflation in the short run ⓘ
criticizedFor	breakdown during stagflation in the 1970s ⓘ instability of the inflation-unemployment relationship over time ⓘ policy ineffectiveness under rational expectations ⓘ
distinguishedFrom	long-run Phillips curve with no trade-off ⓘ
extendedBy	New Keynesian economics ⓘ surface form: New Keynesian Phillips curve forward-looking inflation expectations ⓘ models with nominal rigidities ⓘ
field	macroeconomics ⓘ
formalizedAs	expectations-augmented Phillips curve by Edmund Phelps ⓘ Phillips curve framework self-linksurface differs ⓘ surface form: expectations-augmented Phillips curve by Milton Friedman
hasVariant	New Keynesian economics ⓘ surface form: New Keynesian Phillips curve Phillips curve framework self-linksurface differs ⓘ surface form: accelerationist Phillips curve expectations-augmented Phillips curve ⓘ
implies	no long-run trade-off between inflation and unemployment under adaptive or rational expectations ⓘ
incorporates	expectations-augmented Phillips curve ⓘ output gap ⓘ role of inflation expectations ⓘ supply shocks ⓘ
influenced	design of inflation targeting regimes ⓘ output gap-based policy rules ⓘ
influencedPolicyIn	1960s ⓘ 1970s ⓘ postwar era ⓘ
originatesFrom	A. W. Phillips 1958 paper on wage inflation and unemployment in the United Kingdom ⓘ
positsRelationshipBetween	inflation ⓘ unemployment ⓘ
relatedTo	NAIRU concept ⓘ natural rate of unemployment ⓘ non-accelerating inflation rate of unemployment ⓘ
relationshipType	inverse relationship between inflation and unemployment ⓘ
usedBy	central banks ⓘ fiscal authorities ⓘ macroeconomists ⓘ
usedIn	macroeconomic policy analysis ⓘ
usedToAnalyze	costs of disinflation ⓘ inflation dynamics ⓘ monetary policy trade-offs ⓘ output-inflation trade-offs ⓘ

Referenced by (5)

Full triples — surface form annotated when it differs from this entity's canonical label.

Phillips curve framework → formalizedAs → Phillips curve framework self-linksurface differs ⓘ

this entity surface form: expectations-augmented Phillips curve by Milton Friedman

Phillips curve framework → hasVariant → Phillips curve framework self-linksurface differs ⓘ

this entity surface form: accelerationist Phillips curve

Great Inflation → influencedBy → Phillips curve framework ⓘ

New Neoclassical Synthesis → isAssociatedWith → Phillips curve framework ⓘ

this entity surface form: New Keynesian Phillips curve

New Keynesian economics → usesTool → Phillips curve framework ⓘ

this entity surface form: Phillips curve