Discover and read the best of Twitter Threads about #Phillipscurve
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Let us talk about the #FED #FOMC's 1st #MonetaryPolicy meeting of 2020. Specifically, let us talk about the puzzle that is a flatter #PhillipsCurve...
The #FederalOpenMarketCommittee (#FOMC) of the #FederalReserveBank (#FED) of the #US concluded its 1st meeting of 2020 on the 29th January 2020. As expected, the FED did not change rates but left the #KeyPolicyRate, the #FederalFundsRate (#FFR) in the 1.5%-1.75% range...
Indeed, if one considers the #FED #Dotplot of December 2019, the decision to keep rates unchanged would not come as a surprise. What I wanted to focus on today is some key passages in the statement, highlighted in yellow in the screenshot below...its all #PhillipsCurve... 
Lets talk about how important it is to frequently #Review #CentralBank #MonetaryPolicy #Frameworks...
I will set things off by pointing out that the various facets of #BusinessCycles (early, mid, late / boom & busts) consistently keep reminding us that what goes up, must come down. We might find ourselves in a prolonged #expansion, but eventually it decelerates into a #recession
As part of #Macroeconomic management (counter cyclical), a #CentralBank's objective (through its #MonetaryPolicy) is to maintain #PriceStability & #FinancialStability & in other cases, to promote #FullEmployment. It does this hand in hand with #FiscalPolicy...
The #Global #Financial #Crisis of 2007/08 taught the policy making world that something special beyond #Conventional #MonetaryPolicy was necessary to lift economies out of the economic malaise...tinkering with the key rates was not enough anymore...
To this end, #centralbanks in the developed world (The US, UK, Japan, The EuroArea) adopted what they termed #UnconventionalMonetaryPolicy #UMP which is characterised by #ForwardGuidance #NegativeInterestRatePolicy & #QuantitativeEasing...but, have they helped?
Very cool special issue #OEconomia on how economists speak, debate, and persuade the general audience. Wide range of examples, and even more to come in Part II!
And let’s not forget about this great "Book reviews" section of the journal (coordinated by Jean Bacelli, @Cyril_Hedoin, @mvsbach and Magdalena Malecka and, from now on, @AGoutsmedt). In this issue :
1/ @RossEmmett's review of David Colander and Craig Freedman’s “Where Economics Went Wrong: Chicago’s Abandonment of Classical Liberalism” (@PrincetonUPress): journals.openedition.org/oeconomia/5412
1. Why is core inflation so low in the #Euro area despite a strong recovery and dynamic wages?
Thread on our #BdfEco piece with @diev_pavel and A. Lalliard
publications.banque-france.fr/en/why-have-st…
Thread on our #BdfEco piece with @diev_pavel and A. Lalliard
publications.banque-france.fr/en/why-have-st…
2. With my colleagues, we have been defending a plain old conservative #PhillipsCurve for several years.
3. But there is no way you can understand recent core inflation with a #PhillipsCurve: it’s been perfectly flat, while unemployment has dropped quite substantially, hence the #PhillipsCurveWar between for instance @farmerrf and @ojblanchard1
@gcalignon en réponse à Farmer sur l'obsolescence de la #Phillipscurve, très virulent depuis longtemps sur le sujet : Il ne faut pas jeter bébé avec l'eau du bain : la CP reste un outil très utilisé en banque centrale (BC) pour plusieurs raisons
1)C Berson @LouisdeCharson @diev_pavel V Faubert, @FerraraLaurent @SophieNefussi @kalantzis A Lalliard, J Matheron et M. Mogliani ont montré que la pente de la courbe de Phillips dans la ZE est restée faible mais stable et significativement différente de zéro depuis la crise.
publications.banque-france.fr/sites/default/…
2)La courbe de Phillips est un outil certes frustre et incomplet, mais permet de comprendre en grande partie la dynamique de l'inflation comme le montre la BCE dans son low inflation report.
ecb.europa.eu/pub/pdf/scpops…
2)La courbe de Phillips est un outil certes frustre et incomplet, mais permet de comprendre en grande partie la dynamique de l'inflation comme le montre la BCE dans son low inflation report.
ecb.europa.eu/pub/pdf/scpops…
