Economics Dictionary of Arguments

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Phillips curve: The Phillips curve represents the inverse relationship between inflation and unemployment in an economy. It suggests that when unemployment is low, inflation tends to be higher, and vice versa. However, this relationship may vary due to factors like expectations, supply shocks, and policy changes, impacting the relation between inflation and unemployment. See also Inflation, Economy, Labour, Economic policies, Supply.
Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments.

Author Concept Summary/Quotes Sources

Keynesianism on Phillips Curve - Dictionary of Arguments

Mause I 57
Phillips Curve/Keynesianism: the Phillips Curve shows the observed negative correlation between unemployment rate and inflation rate.
Keynesianism: Keynesianism interprets this relationship in the sense that economic policies could buy low unemployment at the price of high inflation, on the theoretical basis of Keynes' stated downward rigidity of nominal wages: if real wages are too high and there is therefore unemployment, but a reduction in nominal wages is excluded, then real wages can only be reduced to a level compatible with full employment by raising the price level, i.e. by pursuing an expansive monetary policy.
>Keynesianism, >Unemployment, >Price, >Monetary policy.

Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments
The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Mause I
Karsten Mause
Christian Müller
Klaus Schubert,
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018

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