DETI holds paperson long dole queuesstrong pound curve
THE Department of Enterprise says it holds some documents related to a controversial theory once used to justify allowing higher unemployment to keep inflation down and the Pound strong.
In the 1960s economist William Phillips’ theory that inflation falls as dole queues stretch, became fashionable. Bankers and economists used it to justify policies resulting in higher unemployment and lower inflation. But over the past fifty years his thesis has been shown to be flawed.
DETI said: “‘DFT The Importance of Transport in Business Location Decisions; European Unemployment - The Evolution of Facts and Ideas; European Monetary Union - The Dark Side of a Major Success; World Economic Outlook April 2013; and Low Pay Commission Report 2011” all relate to the Phillips Curve.
It also holds several documents that mentioned the related theory, NAIRU.