The Phillips curve economic model that shows the short-run inverse relationship between inflation and unemployment. Learn how it's useful to investors.

For decades, the economics profession has been trying to tell us all just the opposite. They keep shoveling out the dumbest economic concept of all time: the Phillips Curve.

The Phillips curve, named after a New Zealand economist who wrote about the relationship in the U.K. in 1958, isn’t considered to be foolproof.

For decades, the economics profession has been trying to tell us all just the opposite. They keep shoveling out the dumbest economic concept of all time: the Phillips Curve.

This group won the day within economics. By 1990, nearly every economics textbook presented the Phillips curve in a very different way than it had in 1975.

As David Altig, director of research at the Atlanta Fed, told the Wall Street Journal, “It’s premature to announce the death of the Phillips curve. Maybe it’s just resting.” ...

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 ...

After which, Hanke and Greenwood doth protest too much. Friedman didn’t discredit the Phillips Curve, rather he just shifted the same faulty principles underlying it to so-called “money supply.” ...