#AusPol #RBA #Recession #Economics #PhillipsCurve

"What if you woke up one morning only to be told the very essence of everything you believed in was wrong?

And what if those beliefs — and the decisions you made based upon them — underpinned the living standards of millions of people, here and around the world?

That's the reality dawning on a generation of economists who suddenly have been beset with doubts about one of the great tenets of modern economic theory: the relationship between jobs, wages and inflation."

https://www.abc.net.au/news/2023-02-13/reserve-bank-australia-pushing-us-towards-a-recession-verrender/101963794

Mainly coz Roubini is right
bout #stagflation
OPEC embargo lasted a few months but PriceOfOil never went down again:
shortages and rising prices uS$ 3 to uS$ 13 a barrel in one or two years
Add 60's inflation in US,
#Vietnam war military spending and low productivity
Main problem is when people are blind with #maths of a theory but dispenses reason
If there is unemployment and wages fall,it was thought that consumer prices should fall NOT TRUE and #PhillipsCurve is covered in dust of history.

READ... The stakes are too high to use the #PhillipsCurve with its unreliable tradeoff between #unemployment and #inflation. We don't need millions of Americans out of work. We need investments in our future. - by #ClaudiaSahm
https://open.substack.com/pub/stayathomemacro/p/ban-the-phillips-curve

Today, from the great (i.e. enlightened) economist #ClaudiaSahm on the archaic #PhillipsCurve...

[For background, read her analysis of what the #Fed is doing wrong, and why... https://stayathomemacro.substack.com/p/congress-must-rein-in-the-fed ]

Lots of talk about the flattening of the #PhillipsCurve, so why not have a listen to our #podcast all about AW Phillips. He had the most amazing life and was a very nuanced thinker when it came to #Economics. https://open.spotify.com/episode/3RHbQoyMtNnedfI0PKJITC