Guide to the Phillips Curve

The Richmond Fed has a short guide to the Phillips Curve - great little teaching device.

Unemployment & Inflation - This time is different, not so much

Paul Krugman has good post on how high unemployment is affecting inflation unemployment in the way the Phillips curve would predict (he also has a good chart comparing this recession to earlier ones in regards to inflation and unemployment). He also notes alarm that the Fed seems to be ignoring this piece of economic theory.

More on Structural Unemployment

Mark Thoma's Economist's View blog has more of a break-down on the issue of rising NAIRU and its effect on macro policy - particularly, whether the Fed should be concerned with it. The idea for the Fed is that it could raise its inflation target rate to 4%, which would cause the economy to move up the Phillips Curve to a lower rate of unemployment.