Government has no resources. It can only spend what it’s taken from us first. Yet Keynesian economists (meaning the vast majority of economists) believe government spending boosts economic growth.

We got another labor market indicator on Wednesday ahead of Friday’s jobs report. According to ADP, the private sector added 152,000 jobs in May. That’s fewer than were added in April, so a bit of a ...

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 ...

The Phillips curve predicts that when the unemployment rate drops, inflation will rise as businesses compete for scarce labor and drive up wages. The late William Phillips, a neo-Keynesian economist ...

The Phillips curve describes an inverse correlation between inflation and unemployment. It says that as inflation rises, unemployment goes down, and vice versa. The curve got its name from a New ...

The Fed’s masterful use of the Phillips curve to adjust interest rates in the 1990s may have been “a stopped clock is right twice a day” phenomenon. Alan Blinder notes that in the 1990s he and others ...

About a half-century ago, my investment and economic mentor, Bradford F. Story, remarked that leaders at the Federal Reserve and Treasury would never succeed until they disabused themselves of the ...

“Low unemployment and low inflation are central goals of stabilization policy. During the 1950s and 1960s the view of a stable tradeoff between inflation and unemployment was established, the ...

“If you put it in a murder mystery framework — ‘Who Killed the Phillips Curve?” — it was the Fed that killed the Phillips Curve,” St Louis Fed President James Bullard quipped back in 2018. While the ...

Currently the Federal Reserve is using unemployment rate and inflation rate thresholds to guide monetary policy. Specifically, the Fed says it expects to keep monetary policy easy as long as the ...