AOC 'nailed it' with questions to Fed chair

[Chris]

AOC gets one right. She's one smart cookie.



Phillips Curve

The Phillips curve represents the relationship between the rate of inflation and the unemployment rate. Although he had precursors, A. W. H. Phillips’s study of wage inflation and unemployment in the United Kingdom from 1861 to 1957 is a milestone in the development of macroeconomics. Phillips found a consistent inverse relationship: when unemployment was high, wages increased slowly; when unemployment was low, wages rose rapidly...

Of course, as that source explains, the Phillips Curve has been challenged as long ago as Edmund Phelps and Milton Friedman.

[Captdon]

It took a genius to figure that out.

[Peter1469]

It took a genius to figure that out.

No, just to demonstrate it with data.

[donttread]

AOC gets one right. She's one smart cookie.



Phillips Curve



Of course, as that source explains, the Phillips Curve has been challenged as long ago as Edmund Phelps and Milton Friedman.

what does cause inflation?

[Peter1469]

what does cause inflation?

Many things can cause inflation. A rise in production costs- called cost-push inflation. When demand outpaces supply- called demand-pull inflation.