Strategy Insight
Peter Berezin’s Thought of the Day: The Kinked Phillips Curve Framework, Vindicated?
The basic idea behind the kinked Phillips curve framework is that there is a non-linear relationship between inflation and unemployment. When long-term inflation expectations are well anchored and the economy is operating along the steep portion of the aggregate labor supply curve, falling labor demand mainly leads to slower wage growth and fewer job openings rather than lower employment.
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As BCA Research’s flagship publication, the Global Investment Strategy service provides macro-based investment recommendations across all asset classes, geographies, and time horizons.
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