Phillips curve | Inflation - measuring the cost of living | Macroeconomics

Phillips curve | Inflation - measuring the cost of living | Macroeconomics | Khan Academy

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12 жыл бұрын

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The observation that inflation and unemployment tend to be inversely correlated
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Пікірлер: 76

@xoLaruhh 9 жыл бұрын

You sir are incredible, I'm passing math because of you and now I can pass economics. What can't you do??

@rahadhossainmizi3969 3 жыл бұрын

Celebrate 😜👍

@tariquezafar5265 3 жыл бұрын

Ohh thank you xoLaruhh😊👍

@samer9530 2 ай бұрын

After eight years since your initial comment, have you pursued a career in economics? Are you currently employed in the field related to this topic? I'm kinda second guessing my study choices right now and just curious about your journey

@xoLaruhh 2 ай бұрын

@@samer9530😂😂😂 I finished my masters in Economics, only to work at Royal Bank of Canada (RBC), get carpel tunnel, fall into depression at my desk job and do a complete 180 and go into real estate (which economics has helped with) All in all I did enjoy economics and would still advise to study it, I love the study. Just work-wise didn’t work out for me

@subhasispan9846 8 жыл бұрын

THANK YOU! you have made it so simple, so reasonable.

@prab3636 7 жыл бұрын

Im just wondering...does this man know everything? He's helped me with series for AP calc bc and ap physics before, and macro too?!

@oliversissonphone6143 3 жыл бұрын

It's not that hard to know a few first year university subjects well..

@KM-wb1yd 3 жыл бұрын

Sal actually spends a lot of time studying himself and learning the concepts well enough to teach others. This is his full time, so it makes sense that he knows "everything" :)

@silasdee7865 3 жыл бұрын

Amazing class!! You have the gift of simplification.....can't thank you enough for what you are doing with Khan Academy.

@bienleminh1667 22 күн бұрын

how can this man know literally everthing?

@jakepelter4045 11 жыл бұрын

Central Banks and Politicians "love it" because it is true in the short run usually. The Philips Curve is very useful.

@linhtrangpham1995 9 жыл бұрын

I regret that I didn't find that video to learn when I study phillip curve in macro course :(.

@lessmoneylessproblems5145 Жыл бұрын

This video is very relevant in 2022

@abhinavitsmebellamy 4 жыл бұрын

Thank you, Sir. Really well explained!!

@muhammadyaseenbulbule9638 4 жыл бұрын

Thank You For Making It Simple

@lacrypta212 Жыл бұрын

Visiting this in 2022, amazing how times repeat themselves lol

@Insanox2 11 жыл бұрын

khan academy video on solow growth model please

@necrashroudpublications604 9 жыл бұрын

thank you sir very helpfull

@PEFOBE007 11 жыл бұрын

Thank you

@hafizhadea 8 жыл бұрын

It's well explained but I think it still lacks of information. How about the New Keynesian Philips Curve, New Classical version, and how the formula is..

@chinmaycm9697 5 жыл бұрын

Nicely explained.....

@ilikechess1 12 жыл бұрын

Superb! Once again.

@hazaler 9 жыл бұрын

i wish that i found you 2 weeks earlier ..

@ftorresgamez 12 жыл бұрын

@RyogaShark, Not necessarily "higher employment". If you have price floors on labor, you can have high demand and still high unemployment. The problem with Keynesian economics is that Keynesians tend to lump people's economic decisions into simplistic categories. For instance, they would lump together all employment and all wages to determine an average wage, when in fact people work in very diverse and different fields, with different productivity outputs.

@unknownunknown1600 4 жыл бұрын

May God bless you man

@ngatruong5710 6 жыл бұрын

His voice is beautiful

@yoannaasenova5321 5 жыл бұрын

Thank you! Thank you! Thank you!

@jhlim 6 жыл бұрын

Very nice explanation of what the philips curve is. However data does not support this in the US. Correlation between between unemployment rate and wage rise is less than 0.1%. Other data explains wage rise better.

@SanRemoMotelBar 7 жыл бұрын

What about the natural rate? It should intercept the X axis.

@CIUproduction 11 жыл бұрын

CoooooooLLLLL VIDS!!!!

@mwansamulengalastone6472 10 жыл бұрын

Nice one thats the inverse relationship ha, cool thanks

@Agorismohoje 3 жыл бұрын

NICE

@libertysprings2244 4 жыл бұрын

Late 90s had super low oil prices and more cheap labor from China, both causing low inflation. In my view the Phillips curve only applies for products made within the country considered. For example, low unemployment in the healthcare industry has been causing health care costs to increase. Same for college education (high demand, low supply). Foreign-made products that use foreign labor (where unemployment is high and wages $1 per hour) will experience low inflation when imported to the u.s. and confuse the u.s. economists at the fed. Only when the dollar falls and/or oil prices rise, will we have more widespread inflation in the u.s.. Luckily for now, fracking oil locally has saved us from oil price inflation.

@ftorresgamez 12 жыл бұрын

@RyogaShark, "Higher employment is what causes Wages to rise." No, it's higher demand for labor, not higher employment. You can still have raising wages with high unemployment, especially under artificial wage floors.

@williamjpiano 12 жыл бұрын

@Elmgren76 so true...

@mrmsmartin527 8 ай бұрын

Wait.. are you saying... If things are less expensive people don't have to work as much and when they are more expensive people work more... SHOCKING

@futgeek3272 4 жыл бұрын

Good yet incomplete video

@rupasuhag8536 3 жыл бұрын

is this topic is of 11th class eco ?? if is then tell in which ch ??

@alyssazapanta799 2 жыл бұрын

Some segments in the video are stamped not adjacent to each other

@alexstacyward977 11 жыл бұрын

someone explain the snapping back concept please

@qwnuuri 11 жыл бұрын

somebody know which program he use?

@fatboyj182 12 жыл бұрын

we should make this guy president

@anthonydemetriou9335 8 жыл бұрын

Hold tight roadman

@Confederalist 12 жыл бұрын

Inflation is always and everywhere a monetary phenomenon. -Milton Friedman

@socctty 12 жыл бұрын

Because demand has to increase in response to the rise in the monetary base. Paul Krugman is probably the guy to read on Japan's lost decade.

@luisgentil 11 жыл бұрын

I don't think you should have ended this lesson by simply stating that the Phillips Curve "could be generally true". If that were true there would not be a second version of the curve which is the one generally accepted nowadays. The modified version of the curve takes into account inflation expectations of the economic agents and a "natural" rate of unemployment. In short, the agents realize what's going on and the effect eventually fades away, bringing unemployment back to the natural rate.

@eddysadvanture6334 3 жыл бұрын

USYD ECOS 2002 **

@karfar8029 2 жыл бұрын

Economists have been trying their hardest to hit 2% inflation for decades. They have recently admitted to not having a working model to explain inflation. Economics is the antithesis to a science. It is a faith. What you are claiming is that the solution to inflation is to increase the price of banking (increase the interest rate) whereby increasing the cost of all goods and services and to increase unemployment. How exactly is increasing prices and unemployment going to fix inflation? Doesn't increasing prices and destitution increase prices... i.e. stagflation? What Volker did actually made it worse, it did not solve the issue. If one wants to solve inflation, one would have to address the actual cause of the inflation. Most often, in America, it's petroleum. The true cause of our current inflation problems is both petroleum shortages and disruptions in global and local shipment lines. (2022) One can easily blame Biden and one Mr Pete Buttigieg. Our problem is an over reliance on a single commodity and a globalized exchange market that is particularly susceptible to disruptions.

@omgiheartpie 12 жыл бұрын

If expansions in the money supply (inflation) inevitably cause price increases, then why has the central bank of Japan's trillion+ injection into the financial system not caused run-away price increases? In fact, deflation and anemic inflation have remained persistent and this has plagued Japan's economy for over 2 decades.

@user-kb6lg1jt4d 4 жыл бұрын

Indonesian subtitle please...

@bobmartin8501 5 жыл бұрын

The year is now 2018 this theory is turning out to be JUNK SCIENCE>

@NotBen101 11 жыл бұрын

Once the federal reserve raises interest rates or the government has to pay its debts the economy will just go back into recession

@agzapiola 4 жыл бұрын

I find it quite disturbing that this guy's voice is SO SIMILAR to Anthony Bourdain's... (RIP)

@mousumichakraborty8394 6 жыл бұрын

I have huge confusion about this... I think there is inverse relationship between money wage and unemployment or inverse relationship between money supply and unemployment.

@MyMrwrestling 11 жыл бұрын

wat do the feds do with printing money! buy bonds hope banks lend? has it happened ? no - has inflation gone up ? no in theory it should raise inflation but its not happened

@MyMrwrestling 11 жыл бұрын

whats wrong with that ? it has not caused inflation here in uk - printing money has little impact on inflation its a media overeaction

@schrodingerscat3912 7 жыл бұрын

the dismal science

@alisimsek4818 2 жыл бұрын

Guys, If demand increases won't the price fall?

@MaSa-bp5qe 2 жыл бұрын

No, the exact opposite. The higher the demand the higher the price. The lower the demand the lower the price.

@ecnerwal999 12 жыл бұрын

@RyogaShark You don't understand basic economics. I recommend you learn from the best; Mises.org

@CompUnit 3 ай бұрын

I don’t understand

@ecnerwal999 12 жыл бұрын

WRONG! Wages can't rise without can expansion of the money supply. Wages(the price of labor), like any other price, cannot rise because it is constrained by the amount of money that exists. Inflation just lowers real wages, as nominal wages stay the same with higher prices, and therefore it is the low wages that create higher employment.

@jakepelter4045 11 жыл бұрын

I'm not thinking you watched the video.