It is central to Keynesian economic thought that market prices are sticky—that is, they sometimes fail to adjust quickly or at all to changes in supply and demand. Central banks therefore intervene to ...

Discover the concept of underconsumption, its role in economic theory, and real-world examples like the auto industry during the Great Depression.

Simulations using a Phillips curve-type relationship provide insights into the importance of demand versus supply for inflation over different periods. The decade of low inflation after the Great ...

I use Phillips curve type regressions to assess the relative contributions of demand and supply forces to U.S. inflation during the pandemic era from February 2020 onward and the decade following the ...