The unemployment rate decreased from 4.0 percent in January 2022 to 3.8 percent in February. And the Consumer Price Index increased, year over year, by 7.9 percent in February, up from 7.4 percent in January.—Bureau of Labor Statistics
More Data
- The Federal Reserve Bank of New York’s estimate of the expected inflation rate is 5.8 percent in January and 6.0 percent in February.
- The U.S. Congressional Budget Office’s estimate of the natural unemployment rate in the first three months of 2022 is 4.4 percent.
What is the short-run Phillips curve?
The short-run Phillips curve is the relationship between inflation and unemployment, holding constant the expected inflation rate and the natural unemployment rate. The short-run Phillips curve shows a tradeoff between inflation and unemployment in the short run.
What is the long-run Phillips curve?
The long-run Phillips curve is the relationship between inflation and unemployment when the actual inflation rate equals the expected inflation rate. The long-run Phillips curve shows that any expected inflation rate is possible at the natural unemployment rate.
What do the data for January and February 2022 tell us about the U.S. Phillips curves?
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What do the data from 2019 through 2022 tell us about the U.S. Phillips curves?
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