[Uncle Miltie]

THE PHILLIPS CURVE IS DEAD!!!!

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In economics, the Phillips curve is a historical inverse relationship between the rate of unemployment and the rate of inflation in an economy. Stated simply, lower unemployment in an economy is correlated with a higher rate of inflation.

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In the 1970s, many countries experienced high levels of both inflation and unemployment also known as stagflation. Theories based on the Phillips curve suggested that this could not happen, and the curve came under a concerted attack from a group of economists headed by Milton Friedman. Friedman argued that the Phillips curve relationship was only a short-run phenomenon. He argued that in the long run, workers and employers will take inflation into account, resulting in employment contracts that increase pay at rates near anticipated inflation. Unemployment would then begin to rise back to its previous level, but now with higher inflation rates.

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Most economists no longer use the Phillips curve in its original form because it was shown to be too simplistic.[3]

http://en.wikipedia.org/wiki/Phillips_curve

[Paladin2]

Economics is NOT a Science.

(Never wuz)