- 03 Luglio 2018
- by Blogger
The so-called positive association between economic growth and price inflation, which is labeled as the Phillips curve, and is regarded by almost all economists as natural law on par with the law of gravity, is a misleading concept.
All that it describes is the fact that the variation in growth rate of money supply must result in a variation in prices of goods and services over time. Now, as long as the machinery of wealth generation is still functioning Fed policy makers can get away with the illusion that they can grow the economy.