----------------- HES POSTING ----------------- I believe it first appeared in first year text books in Baumol and Blinder and Lipsey and Steiner. Both around 1980. (Samuelson and Nordhaus were late in the day in this one.) In our first treatment, I referenced its first use that I knew in print. Unfortunately, I am travelling now and cannot get my reference to its first use but I believe the reference is in our 1981 edition of Economics. I decided to go over to an AD-AS treatment while at Yale as Irving Fisher Visiting Professor in 1979. With a lot of misgivings, I decided it was the best way to explain stagflation by making the price level endogenous to a Keynesian model. We, of course, used the locus of E = Y equilibrium points interpretation of the AD curve. I believe, but again cannot check until I get home, that I discussed this a bit in my contribution to Macroeconomics and the Real World, edited by Roger E. Backhouse and Andrea Salanti Richard Lipsey ------------ FOOTER TO HES POSTING ------------ For information, send the message "info HES" to [log in to unmask]