St Louis Fed: FOMC largely ignored Phillips curve framework
The Phillips curve framework did not make a significant contribution to monetary policymaking, a St Louis Federal Reserve paper published in July shows.
The authors, Ellen Meade and Daniel Thornton, examine the Federal Open Market Committee (FOMC) transcripts and the role the Phillips curve framework played in Fed policymaking from 1982 through to 2003. They argue that the Phillips curve framework, which includes the output gap and natural rate hypothesis, plays a central role in the canonical
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