Edmund S. Phelps

A A A

DEFINITION

An American professor of political economy at Columbia University. Born in 1933 in Evanston, Ill., Phelps has a Ph.D. from Yale and won the 2006 Nobel Memorial Prize in Economics for his research on intertemporal trade-offs in macroeconomic policy and the link between employment, wage setting and inflation. Before accepting a tenured position at Columbia, he taught at Yale and the University of Pennsylvania.

INVESTOPEDIA EXPLAINS

Phelps' macroeconomic research focuses on unemployment and inclusion, economic growth, business swings and economic dynamism. One of Phelps major contributions to economics was the insight he provided on the interaction between inflation and unemployment. In particular, Phelps described how current inflation is reliant on expectations about future inflation as well as unemployment.


RELATED TERMS
  1. Elinor Ostrom

    A political scientist who won the Nobel Memorial Prize in Economic Sciences ...
  2. Unemployment

    Unemployment occurs when a person who is actively searching for employment is ...
  3. Economist

    An expert who studies the relationship between a society's resources and its ...
  4. Economics

    A social science that studies how individuals, governments, firms and nations ...
  5. Inflation

    The rate at which the general level of prices for goods and services is rising, ...
  6. Macroeconomics

    The field of economics that studies the behavior of the aggregate economy. Macroeconomics ...
  7. Microeconomics

    The branch of economics that analyzes the market behavior of individual consumers ...
  8. LIBOR

    LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate that some of the ...
  9. Global Recession

    An extended period of economic decline around the world. The International Monetary ...
  10. Economic Exposure

    A type of foreign exchange exposure caused by the effect of unexpected currency ...
Related Articles
  1. The Misery Index: Measuring Your Misfortune
    Fundamental Analysis

    The Misery Index: Measuring Your Misfortune

  2. What You Should Know About Inflation
    Economics

    What You Should Know About Inflation

  3. Explaining The World Through Macroeconomic ...
    Options & Futures

    Explaining The World Through Macroeconomic ...

  4. How Unemployment Affects You (Even If ...
    Retirement

    How Unemployment Affects You (Even If ...

  5. Herding Tendencies Among Analysts
    Investing Basics

    Herding Tendencies Among Analysts

  6. Understanding Leveraged Buyouts
    Fundamental Analysis

    Understanding Leveraged Buyouts

  7. How The Sarbanes-Oxley Era Affected ...
    Fundamental Analysis

    How The Sarbanes-Oxley Era Affected ...

  8. Where's The Market Headed Now?
    Fundamental Analysis

    Where's The Market Headed Now?

  9. Does Higher Risk Really Lead To Higher ...
    Active Trading

    Does Higher Risk Really Lead To Higher ...

  10. Invest Like Madoff - Without The Jail ...
    Options & Futures

    Invest Like Madoff - Without The Jail ...

comments powered by Disqus
Hot Definitions
  1. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s risk – e.g.: retirement payment liabilities to former employee beneficiaries. The plan sponsor can do this by offering vested plan participants a lump-sum payment to voluntarily leave the plan, or by negotiating with an insurance company to take on the responsibility for paying benefits.
  2. XW

    A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters.
  3. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  4. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  5. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  6. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
Trading Center