dont need to mention the philips curve (its dead)

[knight69]

Evidence suggests the Philips curve is dead. Does this mean we can obtain lower inflation and lower unemployment?Using any of the demand management and/or supply policies at your disposal, what combination of policies would you recommend to the government in order to achieve a sustained reduction in unemployment and inflat? what, if any, are the problems with your recommendations?

No one seems to understand the new economy. Most companies use as many contract workers as they do employees. This helps them control their bottom line by giving them a variable labor supply. When a company lays off 500 employees that means it has probably NOT HIRED 1000 contractors. Greenspan sees the layoff of 500 as unemployed but not the 1000 not hired. Outsourcing has not necessarily killed the philips curve but it has made it much more difficult to understand. For example the democrats want to increase demand with a low income tax cut but they don't want to increase the supply by reducing capital gains. That is a recipe for stagflation.

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[knight69]

she wont be back from wiesbaden until monday and yes i have permission to shave it.

 

[CrimsonKing]

I have and MBA and have never heard of the Phillips Curve.. guess I slept through macro-economics...

Either way.. many 'contract' workers are in fact employed by a labor/contracting firm (i.e. EDS, Aerotek) and not independents..

Also, if this was the case as you supposed above.. small business(i.e. contractors) growth would be booming ...

 

[2Thick]

Evidence suggests the Philips curve is dead. Does this mean we can obtain lower inflation and lower unemployment?Using any of the demand management and/or supply policies at your disposal, what combination of policies would you recommend to the government in order to achieve a sustained reduction in unemployment and inflat? what, if any, are the problems with your recommendations?

No one seems to understand the new economy. Most companies use as many contract workers as they do employees. This helps them control their bottom line by giving them a variable labor supply. When a company lays off 500 employees that means it has probably NOT HIRED 1000 contractors. Greenspan sees the layoff of 500 as unemployed but not the 1000 not hired. Outsourcing has not necessarily killed the philips curve but it has made it much more difficult to understand. For example the democrats want to increase demand with a low income tax cut but they don't want to increase the supply by reducing capital gains. That is a recipe for stagflation.

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Whoopass!

 

[knight69]

its time for somebody to replace greenspan

 

[knight69]

were heading to key west next tuesday and when i get back i,l email you pics of it.

 

[Testosterone boy]

I majored in econ and never heard of this thingie. People who claim mastery of economics scare me. Along with palmreaders, psychics and others who claim knowledge of the supernatural.

 

[2Thick]

I majored in econ and never heard of this thingie. People who claim mastery of economics scare me. Along with palmreaders, psychics and others who claim knowledge of the supernatural.

You never heard of the Phillips Curve? Wow.

 

[CrimsonKing]

Whenever unemployment is low, inflation tends to be high. Whenever unemployment is high, inflation tends to be low. This inverse relationship between inflation and unemployment is called the Phillips curve.

The Phillips curve is a relative relationship. Unemployment is considered low or high relative to the so-called natural rate of unemployment. Inflation is considered low or high relative to the expected rate of inflation

http://www.j-bradford-delong.net/multimedia/PCurve1.html


Ahh. i knew of this relationship.. didn't know its 'trade' name