Triangle model

In macroeconomics, the triangle model employed by new Keynesian economics is a model of inflation derived from the Phillips Curve and given its name by Robert J. Gordon. The model views inflation as having three root causes: built-in inflation, demand-pull inflation, and cost-push inflation. Unlike the earliest theories of the Phillips Curve, the triangle model attempts to account for the phenomenon of stagflation.

Triangle model

Model of economic inflation

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This article is about economic inflation. For use in business, see Organizational analysis § Strategic triangle model.

In macroeconomics, the triangle model employed by new Keynesian economics is a model of inflation derived from the Phillips Curve and given its name by Robert J. Gordon. The model views inflation as having three root causes: built-in inflation, demand-pull inflation, and cost-push inflation.^[1] Unlike the earliest theories of the Phillips Curve, the triangle model attempts to account for the phenomenon of stagflation.

See also

• Inflation § New_Keynesians
• Phillips curve § Gordon's triangle model
• Wage-price spiral

References

1. ↑ Robert J. Gordon (1988), Macroeconomics: Theory and Policy, 2nd ed., Chap. 22.4, 'Modern theories of inflation'. McGraw-Hill.

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