TITLE

The Phillips Curve and Postwar Inflation are History

AUTHOR(S)
Shilling, A. Gary
PUB. DATE
July 2001
SOURCE
Business Economics;Jul2001, Vol. 36 Issue 3, p40
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Over 250 years of history have shown inflation to be a demand-side phenomenon, primarily caused by war and central governments' ability to spend far in excess of revenues for sustained periods. However, the stage is now set for a sustained price stability or even deflation throughout the developed world. Of fourteen forces that tend to lead to deflation, thirteen are now operable, and the fourteenth can be expected to hit soon. In short, the Phillips Curve is an artifact of a particular epoch, not a structural element of a peacetime economy. The coming price stability or deflation will largely be productivity-driven and, on balance, benevolent.
ACCESSION #
5057647

 

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