Phillips curve

As the the 50th anniversary of the late Bill Phillip's most famous paper is coming up in 2008 and there is a conference to mark the occasion, this article from the San Francisco Fed is timely. It offers a nice summary of where things stand in "Fixing the New Keynesian Phillips Curve". Greg Mankiw points out that the Nobel Prize winner George Akerlof once said, "Probably the single most important macroeconomic relationship is the Phillips curve." But as Mankiw also points out, the problem is that "it is a relationship that we still don't fully understand".