1. Copyright © 2002 Pearson Education, Inc. Slide 1

2. Copyright © 2002 Pearson Education, Inc. Slide 2 Inflation, the Phillips Curve, and Central Bank Commitment Chapter 16

3. Copyright © 2002 Pearson Education, Inc. Slide 3 Figure 16-1 The Phillips Curve

4. Copyright © 2002 Pearson Education, Inc. Slide 4 Figure 16-2 The Phillips Curve in the 1950s

5. Copyright © 2002 Pearson Education, Inc. Slide 5 Figure 16-3 The Phillips Curve in the 1960s

6. Copyright © 2002 Pearson Education, Inc. Slide 6 Figure 16-4 The Phillips Curve in the 1970s

7. Copyright © 2002 Pearson Education, Inc. Slide 7 Figure 16-5 The Phillips Curve in the 1980s

8. Copyright © 2002 Pearson Education, Inc. Slide 8 Figure 16-6 The Phillips Curve in the 1990s

9. Copyright © 2002 Pearson Education, Inc. Slide 9 Figure 16-7 The Inflation Rate in the United States, 1946-1999

10. Copyright © 2002 Pearson Education, Inc. Slide 10 Figure 16-8 Deviations from Trend in Real GDP, 1946-1999

11. Copyright © 2002 Pearson Education, Inc. Slide 11 Figure 16-9 Model Phillips Curve Relationship

12. Copyright © 2002 Pearson Education, Inc. Slide 12 Figure 16-10 The Effects of an Increase in the Expected Inflation Rate

13. Copyright © 2002 Pearson Education, Inc. Slide 13 Figure 16-11 The Feds Preferences Over Inflation Rates and Output

14. Copyright © 2002 Pearson Education, Inc. Slide 14 Figure 16-12 The Fed Exploits the Phillips Curve

15. Copyright © 2002 Pearson Education, Inc. Slide 15 Figure 16-13 The Fed Attempts to Increase Y Permanently

16. Copyright © 2002 Pearson Education, Inc. Slide 16 Figure 16-14 The Commitment Problem

17. Copyright © 2002 Pearson Education, Inc. Slide 17 Table 16-1