Phillips Curve Calculator
FinanceEstimate inflation using the expectations-augmented Phillips Curve, which relates inflation to expected inflation and the gap between actual and natural unemployment.
Estimated Inflation Rate
Estimated inflation given the current unemployment gap
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Frequently Asked Questions
Why does unemployment below the natural rate push inflation up?
Unemployment below the natural rate signals a tight labor market, employers compete harder for workers and raise wages faster, and those costs typically get passed on as higher prices.
Does this cover every version of the Phillips Curve?
This uses the standard expectations-augmented model. More advanced New Keynesian versions add several more variables, such as expected future inflation and a supply-shock term, which are not included here.
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