The Death of the Phillips Curve Reconsidered
I. A summary of the debate, 390.—II. The neoclassical contributions to the debate, 393.-111. An eclectic model of wage dynamics, 398.-1V. Empirical analysis of the basic equation, 403.—V. Conclusions, 411.—Appendix, 414. The persistent problem of "stagflation"—the presence of both high unemployment and rapid inflation—may suggest that the ac-celerationist denial of a trade-off between inflation and unemploy-ment should be accepted without further delay. 1 This study presents empirical research suggesting that any inflation-unemployment trade-off is indeed only transitory, but the claim is made that the accelerationists have reached their conclusion by a false route, their voluntary-unemployment-job-search theories. In order to support these positions, the Phillips Curve debate is briefly reviewed, cyclical patterns of unemployment are analyzed, and an eclectic model of wage movements is developed and estimated. The first section attempts to clarify the debate by focusing on three dis-
- DOI
- 10.2307/1885974
- Volume
- 91 (3)
- Pages
- 389
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