Monday, August 21, 2017

Or maybe you can't depend on it

"Arthurian" economics is the economics that makes sense to me; nothing more, nothing less. Supporting it is the understanding I have of everybody else's economics. And it's all, or almost all, just things I've picked up because I'm interested.

It's not always easy figuring out what other people are thinking. It wasn't long ago, for example, I finally learned that when you see a graph of a supply curve or a demand curve, output is on the horizontal axis and price is on the vertical.

Anyway, price is always on the vertical axis. Knowing that is almost always useful, when you read somebody's offhand remark. Not knowing it, sometimes the remark cannot be understood. Knowing it, you know what the guy is saying.

So here we are, and I'm looking at flat phill in Google Search, and I find Broken Phillips Curve a Symptom of Lower U.S. Inflation Expectations from PIMCO. They show this graph:

Graph #1, from PIMCO

They have it backwards. They have price on the horizontal.


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