Introduction to the Inclusion of the Real Interest Rate with other factors in Phillips Curve Analysis

This paper summarizes the arguments and counterarguments within scientific discussion on issue regarding Inclusion of Real Interest Rate with other factors in Phillips Curve Analysis. The main purpose article is to cause economists consider inclusion real interest rate Philips analysis. Earlier have examined Curve, including Irving Fisher (1926). Later (1958, 1961) made enough impression give its appellation 1961). Further work has been done by Freidman, Phelps Lucas, Rapping others. Shifts from Short Run (SRPC) Long (LRPC) explained primarily through workers not realizing their wage decreased until some time passed. Also, this shifting SRPC LRPC due producers thinking that demand for products had a real, sustained increase, finally realize true. agrees those being present but also posits idea changes affecting shift form LRPC. brief conclusions five econometric papers suggest should be included research empirically confirms theoretically proves articles evidence Though Austrian capital theories, do use analysis instead employ Hayekian Triangles. results shows inflation unemployment stable inverse relationship. These can useful economic analysts, government, financial experts, policymakers.