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  • James Forder (a1)

Milton 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 the 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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de Vroey, Michel. 1998. “Accounting for Involuntary Unemployment in Neoclassical Theory: Some Lessons from Sixty Years of Uphill Struggle.” In Backhouse, R. E., Hausman, D. M., Mäki, U., and Salanti, A., eds., Economics and Methodology. Houndmills: Palgrave, pp. 177224.
Forder, James. 2010. “The Historical Place of the ‘Friedman-Phelps’ Expectations Critique.” European Journal of the History of Economic Thought 17 (3): 493511.
Forder, James. 2013. “Macroeconomics and the L-shaped Aggregate Supply Curve.” In Harcourt, G. C. and Kriesler, P., eds., Oxford Handbook of Post-Keynesian Economics. Volume 2. Oxford: Oxford University Press, pp. 245264.
Forder, James. 2014. Macroeconomics and the Phillips Curve Myth. Oxford: Oxford University Press.
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Journal of the History of Economic Thought
  • ISSN: 1053-8372
  • EISSN: 1469-9656
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