Saturday, October 4, 2014

Updated (non-existent) 3D Phillips curve with PCE inflation

This is an update of the graphs at this post with core PCE inflation instead of core CPI inflation as well as using this trend extracted here:

Here are the 3D graphs (two different views) showing the relationship between inflation and unemployment over time:

And here is the relationship in 2D (with the rainbow representing the blue curve above, with 1960s in purple, through the 2000s in red):

It really seems like the Phillips curve isn't a stable relationship and the patterns seen are pretty meaningless.

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