Main menu For students For teachers Explore our subjects Student events & courses

Explore

More for students
Sign in

Teaching Economics

Topic updates

The Broken Phillips Curve and Missing Pay Rises

Graham Watson

5th November 2017

Share this content:

Really interesting conceptual article about the conduct of monetary policy in the UK, with Larry Elliott arguing that the setting of interest rates is predicated upon a broken economic model, which holds the Phillips Curve as a fundamental assumption of policymaking.

He argues that the reasoning behind the rate rise is that we are close to full capacity and yet there's similarly no evidence of upwards pressure on wages. It is an excellent read and I recommend that all students in the final year of their post-16 courses read it.

Share this content:

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

You might also like

Enrichment Economics: Why Don't Economic Stimulus Packages Always Work?

11th August 2026

In the News Teaching Activity – What is likely to happen to UK inflation over the next year? (July 2026)

2nd July 2026

In the News Teaching Activity – What is happening to consumer confidence in the UK? (May 2026)

21st May 2026

Macro Case Study: Bank of England and inflation

Topical case studies

In the News Teaching Activity – How worrying is the recent increase in inflation? (Jan 2026)

26th January 2026

In the News Teaching Activity – Will the Bank of England cut interest rates before Christmas? (Nov 2025)

17th November 2025

In the News Teaching Activity – What is happening in the UK jobs market? (Oct 2025)

20th October 2025

In the News Teaching Activity – Rising chocolate prices are contributing to inflation in UK (June 2025)

30th June 2025