[JoeFromSidney]

I saw an attempt to validate the Phillips Curve in one of my professional journals. The graph accompanying the article displayed unemployment vs. inflation, and the author fitted a curve to the data. The intent was to show that higher inflation was correlated with lower unemployment. Phillips himself never said there was any causality between the two, only a correlation. Actually the correlation was pretty poor. The data points were scattered all over the graph, and the regression fit had a fairly low correlation coefficient. However, because it supported Keynesianism, it received a great deal of support among economists and politicians. I don't think anyone takes the Phillips Curve seriously any longer.

[fatez]

Yep, Keynes ignored key concepts such as productivity and substitution, two things libs don’t understand...