Friedman's legacy challenged: New theory needed to bridge macroeconomic gap.
The article discusses how economists have long believed in a theory called the Phillips curve, which shows a relationship between inflation and unemployment. However, recent evidence suggests this theory may not be entirely accurate. The current idea of the non-accelerating inflation rate of unemployment (NAIRU) is based on an outdated view of the natural rate of unemployment. This disconnect between theory and reality calls for a new perspective on how we understand distribution and employment in the economy.