© 2020 WFAE
90.7 Charlotte 93.7 Southern Pines 90.3 Hickory 106.1 Laurinburg
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations

Jobs, Inflation And The Phillips Curve

jobs monday

The Phillips Curve measures the relationship between inflation and unemployment. And the Curve predicts that when unemployment is low, inflation tends to rise. Conversely, If unemployment goes up, then inflation should come down. Because then companies don't have to raise wages to compete for workers.

Right now, though, the Phillips Curve doesn't seem to be working as a predictive instrument. The Friday jobs report was awesome. We added 312,000 jobs, wage growth is strong, and unemployment is still below 4%, and has been for a while. Phillips Curve fans should be running up the inflation red flags right about now, and yet the Federal Reserve, and Chairman Powell in particular, say they're not worried.

Why is that? Is the Phillips Curve dead? Did Paul Volcker kill it, back in the 70s and 80s? Or is it just in hibernation? Cardiff and Stacey spoke to some of the biggest economic minds in the business at the American Economics Association conference in Atlanta over the weekend, to get their takes.

Music by . Find us: Twitter / Facebook .

Subscribe to our show on Apple Podcasts , PocketCasts and NPR One .

Copyright 2020 NPR. To see more, visit https://www.npr.org.

We Need Your Help Now More Than Ever

WFAE mask

Our newsroom is hard at work covering everything from the ongoing coronavirus pandemic to the aftermath of the election, the race for a vaccine and our communities' fight to rebuild. But we can't do it without you. Support our local journalism with a donation of ANY amount, and we’ll send you a free WFAE member mask courtesy of AllDayMask.com of Monroe.