When the Phillips Curve idolizers get tricked!

By paying attention to the very “top”, they miss the “tumbling action at the bottom”!

Tumbling Action

And firmly believe that what´s (temporarily) constraining inflation from climbing to target is the behavior of oil prices and the dollar!

Tumbling Action_1

Note: Monthly NGDP & RGDP data from Macroeconomic Advisers

 

2 thoughts on “When the Phillips Curve idolizers get tricked!

  1. Pingback: That was the week that was – Sunday 24th January 2016 – NGDP Advisers

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