A short story of the Phillips curve: from Phillips to Friedman… and back?
Antonella Stirati Department of Economics, Roma Tre University, Italy

Search for other papers by Antonella Stirati in
Current site
Google Scholar
Walter Paternesi Meloni Department of Economics, Roma Tre University, Italy

Search for other papers by Walter Paternesi Meloni in
Current site
Google Scholar
Restricted access

A major contribution of presidential address was the introduction of the long-run vertical Phillips curve. That view, which is consistent with neoclassical foundations, has become so profoundly entrenched in macroeconomists' thinking that increasing evidence of ‘hysteresis’ has not as yet dislodged it. The prevailing notion of the non-accelerating inflation rate of unemployment (NAIRU) is constructed in terms of the ‘natural’ unemployment rate, which has allowed for some changes regarding its microeconomic determinants. However, the macroeconomic features of Friedman's natural rate and the NAIRU remain very much the same and unchanged. The blatant path-dependence of empirically estimated NAIRUs creates a dissociation between macroeconomic theory and empirics which, in our view, is unacceptable and demands a change of perspective. Adopting an alternative theory of distribution and employment might rehabilitate the original approach taken by Phillips vis-à-vis Friedman's legacy.

Contributor Notes

You are not authenticated to view the full text of this chapter or article.

Access options

Get access to the full article by using one of the access options below.


Pay to Access Content (PDF download and unlimited online access)

Other access options

Redeem Token

Institutional Login

Log in with Open Athens, Shibboleth, or your institutional credentials

Login via Institutional Access

Personal login

Log in with your Elgar Online account

Login with your Elgar account
Since 2022 Since May 2022 Past 30 Days
Abstract Views 1088 496 50
Full Text Views 47 21 0
PDF Downloads 61 25 0