Macroscopic

 I have become increasingly conscious that this blog contains scant macroeconomic analysis, perhaps making the subtitle misleading.  This piece therefore intends to summarise the findings from my recently submitted undergraduate thesis, but will hopefully still be accessible. I recently submitted my undergraduate dissertation, entitled: 'The UK Phillips Curve Since the Great Moderation: A Single-Equation Econometric Analysis'. The basic idea was to employ the widespread single-equation approach to the Phillips curve in analysing UK macroeconomic data during the Great Moderation, the Great Recession and thereafter. But why was this analysis necessary? First and foremost, as Simon Wren-Lewis has recently argued, the Phillips curve represents a fundamental economic intuition: when more people are in work, aggregate demand is stronger, meaning it is more likely to be profit-maximising for individual firms to raise prices, leading to inflation. A.W. Phillips, in his seminal 19...