All Topics
All Topics
Technology
Technology
AI
AI
Business
Business
Entertainment
Entertainment
News
News
Programming
Programming
Security
Security
Science
Science
Design
Design
Environment
Environment
Finance
Finance
Crypto
Crypto
Politics
Politics
Sports
Sports
Education
Education
Gaming
Gaming
Art
Art
Music
Music
Health
Health
Books
Books
Food
Food
Travel
Travel
Personal
Personal
Bluesky
Twitter

Does the Phillips Curve Steepen When Costs Surge?

4mo ago

Source

libertystreeteconomics.newyorkfed.orgDoes the Phillips Curve Steepen When Costs Surge?newyorkfed.org
Snippet from the RSS feed
Inflation does not always respond to cost and demand pressures in the same way. When shocks are small, the mapping from costs to prices is roughly proportional—double the shock, double the inflation response. But when the economy is hit by large shocks, this proportionality breaks down. As the recent surge and subsequent decline of global inflation showed, price growth can accelerate—or decelerate—by more than one-for-one relative to the size of the disturbance. Economists refer to this pattern as nonlinear inflation dynamics. In this post, I discuss what these nonlinearities mean, how they relate to the slope of the Phillips curve discussed in a companion post , and how firm-level data can help us understand the mechanisms behind them.

You might also wanna read

Why Supply Dynamics Matter for Financial Markets

The article argues that while demand-side factors (macroeconomic forces like growth, inflation, and cash flows) typically drive financial as

bobeunlimited.substack.com·21d ago

Analyzing Whether Inflation Is Broad-Based or Sector-Specific

This article examines whether high inflation is broad-based or driven by specific sectors. It analyzes the distribution of price changes acr

stayathomemacro.substack.com·25d ago

Inflation Spreads Beyond Gas Prices as US Economy Shows 3.8% Yearly Increase

Inflation is spreading beyond gas prices into the broader US economy, with year-over-year price data showing a 3.8% jump — the fastest pace

mississippifreepress.org·7d ago

Inflation Spreads Beyond Gas Prices as US Economy Shows 3.8% Yearly Increase

Inflation is spreading beyond gas prices into the broader US economy, with year-over-year price data showing a 3.8% jump — the fastest pace

mississippifreepress.org·7d ago

Fed's Goolsbee says oil shock could exacerbate inflationary impulse of AI hype

reut.rs·1mo ago

Trend Wage Inflation: Analyzing Underlying Wage Growth and Its Economic Implications

Economists Martin Almuzara, Richard Audoly, and Davide Melcangi analyze nominal wage growth as a gauge for labor market imbalances, price pr

libertystreeteconomics.newyorkfed.org·1mo ago

Trend Wage Inflation: Analyzing Underlying Wage Growth and Its Economic Implications

Economists Martin Almuzara, Richard Audoly, and Davide Melcangi analyze nominal wage growth as a gauge for labor market imbalances, price pr

libertystreeteconomics.newyorkfed.org·1mo ago

Inflation spreads beyond gas prices to housing, utilities, and recreation in the U.S. economy

The article discusses how inflation in the U.S. is no longer limited to gas prices but has spread to other sectors including housing, utilit

newsie.social·1mo ago

Comments

Sign in to join the conversation.

No comments yet. Be the first.