 Should Keynesian Economics Dispense with the Phillips Curve?Chapter 1 in Issues in Contemporary Economics, 1991, pp 3-20 from Palgrave Macmillan Abstract: Abstract My title should surprise the reader. That is certainly its intent. The presence of some sort of Phillips curve describing the process of sluggish price adjustment is often regarded as a defining characteristic of Keynesian models. Leading Keynesian macroeconomics textbooks all assign a central role to wage and price rigidity and to ‘natural rate’ Phillips curves describing the adjustment of wages and prices. On both sides of the Atlantic, discussions of macroeconomic policy assign a prime role to the concept of the non-accelerating inflation rate of unemployment (NAIRU) and debate its level. Keynesian economists in the USA point to the stability of the Phillips curve in recent years as decisive evidence upholding their position and refuting the views of new-classical economists. In Britain, Key-nesians dolefully track the NAIRU as it continues its upward march into double digits, while remaining resolute in their devotion to the Keynesian paradigm. Keywords: Multiple Equilibrium; Phillips Curve; Macroeconomic Policy; Economic Fluctuation; Poker Player (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-349-11576-1_1 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-11576-1_1 Access Statistics for this chapter More chapters in International Economic Association Series from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.