Phillips curve, RIP


From February 6 Wall Street Journal. So much macro discussion presumes that inflation is always and everywhere driven by booming economies, it's worth remembering rather striking contrary evidence.

I'm looking for a good graphic, but this last week's failure of emerging market central banks to put a dent in their currencies by raising interest rates is also an important reminder of the limits of monetary policy. As surely Argentina's and Venezuela's troubles are beyond anything a central bank can fix by any finite interest rate.

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