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Phillips Curve/Keynesianism: the Phillips Curve shows the observed negative correlation between unemployment rate and inflation rate.
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._____________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. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018