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http://blogs.marketwatch.com/capitolreport/2016/03/16/live-blog-and-video-of-fed-decision-and-janet-yellen-press-conference-3/ http://blogs.marketwatch.com/capi

• dragonwriter 8y ago
  That's not a quote, it's a, well, headline-level interpretation. Followed by a more exact (but still not exact) interpretation, which states the existence of an inverse relationship; there's considerable support for the idea that an inverse relationship between unemployment and inflation exists at least in the short run, but that it is more complex than the original extension of the Phillips curve to unemployment and general inflation (it originally addressed unemployment and wage inflation) would suggest.
  • derf_ 8y ago
    You are right, of course. Here's the exact quote: So the Philips Curve posits that there is a relationship between the degree of slack in the labor market and inflation, and it is an empirical relationship that, while not absolutely tight, has been a consistent relationship over time, and I believe that relationship still holds. https://www.c-span.org/video/?406675-1/federal-reserve-chair-janet-yellen-news-conference https://www.c-span.org/video/?406675-1/federal-reserve-chair... > there's considerable support for the idea that an inverse relationship between unemployment and inflation exists at least in the short run Would you care to cite some? I'm certainly familiar with the post-70's forms of Phillips Curve theory (it's discussed in the very Wikipedia article I linked). But I also cited a 2017 paper from the Philadelphia Fed that looked very hard for such a relationship and couldn't find one, and which itself cites prior research going back to 2001 that agrees.