Harvard University’s Ec10b Principles of Economics class heard a lecture on inflation dynamics and the Phillips Curve from Governor Adriana D. Kugler on April 7, 2025. The governor discussed how pandemic-era inflation occurred in distinct waves, including food, core goods, services, and housing.
She introduced the Phillips curve as a model to capture inflation dynamics. However, she also explored augmentations to this model that could better explain recent inflation episodes. These additions include considering wage expectations and long-run inflation expectations.
Governor Kugler presented various slides during her lecture, including an overview of inflation data in the long run, analysis of inflation waves, and explanations of different Phillips curve models. She discussed how these models have evolved over time, from the baseline model to updated versions that take into account additional factors such as wage expectations and shortages.
The governor’s presentation aimed to provide a comprehensive understanding of inflation dynamics and its connection to the Phillips Curve. Her lecture is an essential resource for students seeking insight into modern economic theories and their applications in real-world scenarios.
Source: https://www.federalreserve.gov/newsevents/speech/kugler20250407a.htm