The Philips Curve (inverse relationship between unemployment and inflation) does not hold quantitatively in practice due to global offsets and is not a reliable framework for understanding inflation; while labor tightness matters for inflation, the statistical correlation between unemployment and inflation is weak when examined across actual historical data.

factualpending

Speaker

Lynn Alden

Evidence Quote

if you do a scatter plot between inflation and unemployment you won't see a lot of correlation so I I generally don't subscribe to that view

Source

Lyn Alden: Money Is ‘Broken’, Markets Face ‘Rerating’ RisksDavid Lin
Created: 8/12/2026, 10:26:01 PM

My Notes

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