Brief Outline of Topics Covered in Lecture 20
Chapter 22 - Appendix - The Phillips Curve and the SRAS Curve
The Phillips curve
- The PC in the 1960's: A permanent tradeoff
- The Friedman-Phelps augmented PC
- The modern PC (adds supply shocks)
- The modern PC with Adaptive Expectations
- Okun's law and the SRAS
Extra Reading
Federal Reserve finds US households are unwell, by Mathew C Klein: The Federal Reserve has just released its first “Report on the Economic Well-Being of U.S. Households“. It provides some useful context for the ongoing debates about the income distribution and excess savings.
A few particularly dispiriting highlights:
...
- Among Americans aged 18-59, only a third had sufficient emergency savings to cover three months of expenses.
- Only 48 per cent of Americans could come up with $400 on short notice without borrowing money or sell something.
- 45 per cent of Americans save none of their income.
