There has been so many ways that Economists have tried to use to predict inflation, however, most of them did not prove to be accurate. The invasion of Philips Curve has helped in evaluating and forecasting inflation. A Phillips curve is an equation that relates the unemployment rate, or some other measure of aggregate economic activity, to a measure of the inflation rate. Modern specifications of Phillips curve equations relate the current rate of unemployment to future changes in the rate of inflation. These specifications are based on the idea that there is a baseline rate of unemployment at which inflation tends to remain constant.
Economics and math are my favorite fields, maybe that why I am a double major in these two. I am excited to learn more about both at the same time and be able to look ahead to see if inflation will be good to us one day
This seems like a very interesting interesting topic. I like that different mathematical principles and models can be used to represent certain trends in economics. It is cool to see how this curve was created to show the correlation between unemployment and inflation trends.
I would have never thought to piece these two things together but it makes so much sense. I find it very important for us as consumers to understand all the things the Phillips Curve has to offer.
As a double major in math and economics, this presentation spoke to my soul. Very informative and well presented. Attempting to predict macroeconomic variables like inflation is an incredibly challenging topic, and this was an excellent introduction to it. Well done!