What remains from the trade-off between inflation and unemployment? (A brief reflection on the Phillips curve)

• Main Author: Alfredo Félix Blanco
• Format: Article
• Language: Spanish
• Published: Universidad Complutense de Madrid 2018-06-01
• Series: Iberian Journal of the History of Economic Thought
• Subjects: inflación, desempleo, curva de Phillips, política económica, expectativas.
• Online Access: http://revistas.ucm.es/index.php/IJHE/article/view/60281

<p>This paper analyzes the debate that took place in the second half of the 20th century about the relationship between inflation and unemployment. The “discovery” of the Phillips curve, provided a powerful tool for the economic policy. But, as always happens in the history of economic ideas, some years later a hard discussion began between economists. At the end, the discussion was about the effectiveness or sterility of economic policies to change the level of unemployment (and inflation) of the economy.</p><p>Although with slightly different features, this is a discussion which is still open to debate among economists.</p>