Phillips Rate

A Phillips Rate is a inverse ratio between an inflation rate and an unemployment rate.

• Context:
  • It can be illustrated over some time period in a Phillips Curve.
• Example(s):
  • March 2014 U.S. Phillips Rate.
  • …
• Counter-Example(s):
  • a Beveridge Rate.
  • an Equilibrium Unemployment Rate.
• See: Natural Unemployment Rate, Job Creation Curve.

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References

2011

• http://noahpinionblog.blogspot.com/2011/03/john-taylor-draws-philips-curve.html
  • QUOTE: … A Phillips curve is a curve that shows an inverse correlation between inflation and unemployment. And in New Keynesian models, inflation and investment go hand in hand - when the economy is booming, prices rise. So a New Keynesian would expect to see something just like what Taylor drew. And then I remembered something else about Phillips curves - they shift over time. Policy shifts and structural shifts in the economy will, over time, change the tradeoff between inflation and unemployment. If you look at data over more than a decade, you see a series of different curves for different time periods ...

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