Hacker News new | ask | show | jobs
by tbrownaw 5314 days ago
> Phillips Curve

Wikipedia seems to think that the 1970s in the US show that it doesn't work.

1 comments

Yes, the Philips Curve is pretty much the poster child example of the Lucas Critique. That is, observed invariants often cease to be invariant when policy changes. When we well and truly went off the gold standard the Philips Curve ceased to have predictive power for the US economy.

More details: http://www.themoneyillusion.com/?p=9677