Inflation, Explained
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The Phillips Curve
The us. Dollar was largely off the gold standard well before 19 71. The phillips curve is named after an economist named alban william phillips. It states that there's a negative statistical correlation and inverse correlation between unemployment and inflation. You can cause unemployment to go lower if you push inflation a little bit higher. And so based on this model, policy makers in the 19 sixties and seventies thought that they could embrace a little bit of a trade off. But it worked until it didn't, and when it didn'tit fell apart in a way that made things worse.
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