Summary of The US Phillips Curve

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

The US Phillips Curve summary
Start getting smarter:
or see our plans


7 Overall

7 Importance

8 Innovation

6 Style


It has been a long-held article of faith among central bank policy makers that there is no such thing as a free lunch – because monetary policy that aims for lower unemployment will result in higher inflation. Crunching the numbers leads economist Olivier Blanchard to revisit a policy favorite of the 1960s, the Phillips Curve, and to offer a Mad Men twist to central bankers’ arsenals. He posits that a free lunch may be possible, at least for a while, as long as the economy resists the temptations of gluttony. getAbstract recommends this thought-provoking contribution to discussions on monetary policy to economists and financial services professionals.

In this summary, you will learn

  • How the Phillips Curve has evolved in the United States,
  • Why lower unemployment has a muted impact on inflation today and
  • Why central bankers should consider “flexible inflation targeting.”

About the Author

Olivier Blanchard, formerly research director at the International Monetary Fund, is a senior fellow at the Peterson Institute for International Economics.



The conduct of US monetary policy is challenging central bankers: Inflation’s behavior since the 2008 global financial crisis has been atypical of previous trends. The policies the Federal Reserve pursued in the 1960s and 1970s adhered to the principle of a trade-off between higher inflation and lower...

Get the key points from this report in 10 minutes.

For you

Find the right subscription plan for you.

For your company

We help you build a culture of continuous learning.

 or log in

Comment on this summary

More on this topic

By the same author

Customers who read this summary also read

More by category