Changes

:From what I understand, the Phillips Curve was originally derived from observation, plotting unemployment rates versus inflation. I believe that monetarists and the Federal Reserve use this relationship more than Keynesians and were the first to explain the relationship. The idea is that increased money supply will encourage lending by creditors, depress interest rates and increase employment because borrowing is so cheap. The increase in the money supply and increased velocity causes inflation to rise at the same time. Unemployment rises in recessions because credit is tight and interest rates rise because firms are less willing to lend in periods of economic uncertainty. Correspondingly with rising interest rates, inflation is low. I believe this clause should be deleted too and I will probably make some edits in the next few days unless there are any who really like this page as is. {{unsigned|Churchofthetrail}}

:From what I understand, the Phillips Curve was originally derived from observation, plotting unemployment rates versus inflation. I believe that monetarists and the Federal Reserve use this relationship more than Keynesians and were the first to explain the relationship. The idea is that increased money supply will encourage lending by creditors, depress interest rates and increase employment because borrowing is so cheap. The increase in the money supply and increased velocity causes inflation to rise at the same time. Unemployment rises in recessions because credit is tight and interest rates rise because firms are less willing to lend in periods of economic uncertainty. Correspondingly with rising interest rates, inflation is low. I believe this clause should be deleted too and I will probably make some edits in the next few days unless there are any who really like this page as is. {{unsigned|Churchofthetrail}}

:::Should read, "firms are less willing to borrow" in times of uncertainty. Joseph Schumpeter clears up this mess: rising interests reflect a demand for ''more'' workers and ''more empolyment''. Low interest rates mean nothing is worth investing in, i.e., "The vanishing of investment opportunity." "investment", in this sense, means hiring or employing people, not the Marxist rhetoric we've come accustomed to associated with rich people & greed.  [[User:RobSmith|Rob Smith]] 23:54, 14 June 2011 (EDT)

:::Should read, "firms are less willing to borrow" in times of uncertainty. Joseph Schumpeter clears up this mess: rising interest rates reflect a demand for ''more'' workers and ''more empolyment''. Low interest rates mean nothing is worth investing in, i.e., "The vanishing of investment opportunity." "investment", in this sense, means hiring or employing people, not the Marxist rhetoric we've come accustomed to associated with rich people & greed.  [[User:RobSmith|Rob Smith]] 23:54, 14 June 2011 (EDT)