The Volcker–Greenspan–Bernanke Phillips Curve

Abstract

This article addresses the issue of Phillips Curve stability between different Federal Reserve (Fed) chairmen, from the time Paul Volcker took office in the late 1970s all the way up until 2010 under the leadership of Ben Bernanke. Phillips Curves are estimated both across and within the regimes of Volcker, Greenspan and Bernanke, and thereafter we also check for the existence of potential structural breaks. The results suggest that the Phillips Curve is very much a robust macroeconomic relationship: not only across time, but across Fed chairmen as well.