A neglected inconsistency in Milton Friedman's AEA Presidential address
Friedman (1968) - his famous Presidential Address to the American Economic Association - contains an elementary error right at the heart of what is usually supposed to be the paper's crucial argument. That is the argument to the effect that during an inflation, changing expectations shift in P...
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| Format: | Working paper |
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University of Oxford
2014
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| Summary: | Friedman (1968) - his famous Presidential Address to the American Economic Association - contains an elementary error right at the heart of what is usually supposed to be the paper's crucial argument. That is the argument to the effect that during an inflation, changing expectations shift in Phillips curve. It is suggested that the fact of this mistake, and of its having gone all-but unnoticed are points of historical interest. Further reflections, drawing on the arguments of Forder (2014) Macroeconomics and the Phillips curve myth, are suggested. |
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