Phillips Curve Calculator
Estimate inflation based on unemployment rates using the Expectation-Augmented Phillips Curve.

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When to Use This Calculator

To understand the inverse relationship between unexpected inflation and cyclical unemployment.

phillips curveinflationunemploymentmacroeconomicseconomics
Who Benefits Most
  • Students
  • Economists
  • Policymakers
  • Financial Analysts
3 min
Intermediate
Real-World Example: Policy Trade-Off Analysis

Scenario

A central bank is analyzing a scenario where expected inflation is 2%, the natural unemployment rate is 5%, and the current unemployment rate is 4%. They want to understand the inflationary pressure.

Outcome

The calculator shows a cyclical unemployment of -1% and a resulting inflation rate of 2.5% (with ╬▒=0.5), indicating that the lower unemployment is creating upward pressure on inflation.

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