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The trade-off interpretation of Phillips's dynamic stabilization exercise
Journal article   Peer reviewed

The trade-off interpretation of Phillips's dynamic stabilization exercise

R. Leeson
Economica, Vol.64(253), pp.155-171
1997
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Abstract

This paper, which examines Phillips's famous curve, is based on Phillips's private papers, and the London School of Economics Methodology, Measurement and Testing Seminar records (sources previously thought to be lost). These sources, plus Phillips's theoretical work, suggest that the equilibrium 'menu of choice' is a misinterpretation of Phillips's dynamic stabilization exercise. Phillips had a clearly articulated role for inflationary expectations in his model, and had no toleration for the notion that ongoing inflation could purchase sustainable reductions in the rate of unemployment. Evidence is cited which indicates that Milton Friedman was profoundly influenced by Phillips's analysis of inflationary expectations.

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Citation topics
6 Social Sciences
6.10 Economics
6.10.22 Monetary Policy
Web Of Science research areas
Economics
ESI research areas
Economics & Business
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