Search results
Results From The WOW.Com Content Network
The Phillips curve is an economic model, named after Bill Phillips, that correlates reduced unemployment with increasing wages in an economy. [1] While Phillips did not directly link employment and inflation , this was a trivial deduction from his statistical findings.
Alban William Housego "A. W." "Bill" Phillips, MBE (18 November 1914 – 4 March 1975) [1] was a New Zealand economist who spent most of his academic career as a professor of economics at the London School of Economics (LSE). He invented the Phillips curve relating level of employment and inflation in 1958.
The Phillips curve appeared to reflect a clear, inverse relationship between inflation and output. The curve broke down in the 1970s as economies suffered simultaneous economic stagnation and inflation known as stagflation. The empirical implosion of the Phillips curve followed attacks mounted on theoretical grounds by Friedman and Edmund ...
Hydraulic macroeconomics is, essentially, a study of the economy that treats money as a form of liquid that circulates through the economic plumbing. William Phillips, an economist and creator of the Phillips curve, invented the MONIAC, a hydraulic computer which simulated the British economy. [3] [4] [5] This is the inspiration for the term.
The New Keynesian Phillips curve was originally derived by Roberts in 1995, [48] and has since been used in most state-of-the-art New Keynesian DSGE models. [49] The new Keynesian Phillips curve says that this period's inflation depends on current output and the expectations of next period's inflation.
In macroeconomics, the triangle model employed by new Keynesian economics is a model of inflation derived from the Phillips Curve and given its name by Robert J. Gordon.The model views inflation as having three root causes: built-in inflation, demand-pull inflation, and cost-push inflation. [1]
"Demand-pull inflation" refers to the effects of falling unemployment rates (rising real gross domestic product) in the Phillips curve model, while the other two factors lead to shifts in the Phillips curve. The built-in inflation originates from either persistent demand-pull or large cost-push (supply-shock) inflation in the past.
Phillips first demonstrated the machine to leading economists at the London School of Economics (LSE), of which Phillips was a student, in 1949. It was very well received and Phillips was soon offered a teaching position at the LSE. The machine had been designed as a teaching aid but was also discovered to be an effective economic simulator. [3 ...