in an opinion column on Wall Street

diary,

Princeton University economist Alan Blinder asks, "Is the Phillips curve dead?"

Source: Alan S. Blinder, "Is the Phillips Curve Dead? And Other Questions for the Federal Reserve", Wall Street

diary,

May 3, 2018.

to. Why have some economists and policymakers wondered in recent years whether the short-run Phillips curve trade-off between unemployment and inflation will no longer hold?

b. Briefly summarize how economists explain what has happened to the short-run trade-off between unemployment and inflation.

Some economists maintain that the

employment-population

the ratio has been trending

▼

lower

higher

for the last 20 years.

As a result, there may be

▼

further

No

any less

idle capacity in the labor market for a given unemployment rate than in previous years.

If he

employment-population

relationship returns to previous levels, the short-term relationship between inflation and unemployment may begin to look

▼

further

any less

like a typical Phillips curve.