The Elgar Companion to John Maynard Keynes
Show Less

The Elgar Companion to John Maynard Keynes

Edited by Robert W. Dimand and Harald Hagemann

The most influential and controversial economist of the twentieth century, John Maynard Keynes was the leading founder of modern macroeconomics, and was also an important historical figure as a critic of the Versailles Peace Treaty after World War I and an architect of the Bretton Woods international monetary system after World War II. This comprehensive Companion elucidates his contributions, his significance, his historical context and his continuing legacy.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 86: The Phillips curve

James Forder

Abstract

The idea of a negative relationship between wage change or inflation and unemployment was well known in economics before Phillips suggested that a single numerical relationship explained British data over nearly 100 years. That idea was never accepted, and although “the Phillips curve” became famous, it was understood in a variety of other ways. When invoked in policy discussion in the 1960s it was usually in the cause of arguing for higher unemployment as the only means of stopping inflation. In the mid-1970s, a fictitious story of it having provided a Keynesian rational for inflationary policy came to be told, and widely believed. Later economics has tended to presume a Phillips-type relationship to be central to macroeconomic understanding, although the earlier literature offered many alternatives. However, the earlier ideas are ignored, perhaps because they seem tainted by the alleged foolishness of policy thinking of that era.

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

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.