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
IntermediateReal-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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