Re: Interest Rates and inflation

["Alan G. Isaac" <aisaac@xxxxxxxxxxxx>]

On Sun, 17 Dec 2000, John O'Donnell wrote:
> With so much evidence that the employment / unemployment
> ratio is independent of inflation why do economists insist
> that there is a relationship?

Most economists do not.
The standard Phillips-curve relationship,
for example, suggests that *changes* in
inflation are correlated with unemployment.
(See the recent symposium in the Journal
of Economic Perspectives, including Jamie
Galbraith's contribution for some critiques
of the others.)

Alan Isaac