The Phillips curve appears in Phillips' PhD and in a 1954 Economic Journal article (2000 [1954], 151, Fig 16.11). It deals with a theoretical relationship at the heart of macroeconomics - between the rate of change of prices and the level of production.
In 1950 - when Friedman first drafted his 'Case for Flexible Exchange Rates' - Phillips had just completed his undergraduate degree.
RL
Leeson, R. 2000. A.W.H. Phillips: Collected Works in Contemporary Perspective. Ed. Cambridge: Cambridge University Press.
----- Original Message -----
From: "Giancarlo de Vivo" <[log in to unmask]>
To: [log in to unmask]
Sent: Monday, 14 April, 2014 12:06:26 AM
Subject: Re: [SHOE] Critiques of Keynesian Economics and the Stimulus
I would have said that the article by AWH Phillips on the famous Phillips Curve was published in 1958 (Economica), not 1954, that in any case it dealt with a (statistical) relation between the rate of change in the wage rate and the rate of unemployment (in the UK economy), and that in any case Phillips in 1953 was 39 (born in 1914), and, far from being an undergraduate, he was about to be made a Reader at the LSE (in 1954). Or is there another Phillips, and another Phillips Curve?
Giancarlo de Vivo
Il giorno 13/apr/2014, alle ore 05.57, Robert Leeson ha scritto:
> The Phillips curve (1954) was a theoretical relationship between the rate of change of prices and the level of production. Inflationary expectations play a crucial role in Phillips' model - it made the system unstable.
>
> Whilst attempting to empirically locate his curve, Phillips had difficulty with price data and so took-up Henry Phelps Brown's offer of the use of wage data, which he then combined with unemployment data.
>
> Friedman's (1953) clear statement about contemporary notions of a Phillips curve trade-off was written while Phillips was an undergraduate and therefore does not use the term "Phillips curve" (which was not used until the 1959 AEA meetings).
>
> RL
>
> ----- Original Message -----
> From: "Alan G Isaac" <[log in to unmask]>
> To: [log in to unmask]
> Sent: Saturday, 12 April, 2014 10:13:58 PM
> Subject: Re: [SHOE] Critiques of Keynesian Economics and the Stimulus
>
> On 4/12/2014 12:34 AM, Robert Leeson wrote:
>> In the 'Case for Flexible Exchange Rates', Friedman (1953,
>> 200) argued that removing the fixed exchange rate
>> constraint allowed each country to pick a point on
>> a ‘Phillips curve’ “according to its own lights … flexible
>> exchange rates are a means of combining interdependence
>> among countries through trade with a maximum of internal
>> monetary independence”.
>
> Just to be clear, as I do not have the essay at hand,
> it does not speak of Phillips and certainly not
> of a Phillips curve, right? Phillips's Economica paper,
> published in 1958, addressed wage behavior not
> price behavior. Friedman's essay does
> acknowledge wage rigidity as a possible source of
> unemployment, but that is quite different.
>
> Thank you,
> Alan Isaac
>
******************************
Giancarlo de Vivo
Dipartimento di Economia, Management, Istituzioni
Università di Napoli "Federico II"
via Cinthia - Monte S. Angelo
80126 Napoli
tel. +39.081.675049
|
