Inflation, unemployment, and money : interpretations of the Phillips curve / Bruno Jossa, Marco Musella.

Format:

Book

Author/Creator:

Jossa, Bruno.

Contributor:

Musella, Marco, 1960-

Language:

English

Subjects (All):

Phillips curve.

Unemployment--Effect of inflation on--Mathematical models.

Unemployment.

Neoclassical school of economics.

Keynesian economics.

Physical Description:

xi, 164 pages : illustrations ; 24 cm

Place of Publication:

Cheltenham, UK ; Northampton, MA, USA : E. Elgar, [1998]

Contents:

1 The origins: Phillips' and Lipsey's contribution 1

1.2 The Phillips curve 1

1.3 Lipsey's interpretation of the Phillips curve 4

1.4 A formal illustration of the Lipsey model 7

1.5 A critical analysis of Lipsey's approach 9

1.6 Further considerations on Lipsey's interpretation of the Phillips curve 13

1.7 A generalization of Phillips' results 19

1.8 The Phillips curve as an economic policy menu 21

2 Keynesians and Monetarists on the Phillips curve 26

2.2 Friedman's and Phelps' criticisms of the Phillips curve 28

2.3 A monetarist interpretation of the Phillips curve in the short run 30

2.4 The Phillips curve in the long run 32

2.5 The natural rate of unemployment and the ineffectiveness of economic policy 35

2.6 New classical macroeconomics and the Phillips curve 38

2.7 Tobin's criticism of the NRU hypothesis 40

2.8 Desai's interpretation 42

3 Neoclassical interpretations of the Phillips curve and the microfoundations of macroeconomics 46

3.2 The asymmetric information assumption and Phelps' parable of the islands 47

3.3 An introduction to the job search theory 49

3.4 New microeconomics. The theory of labour and the optimal stopping rule 51

3.5 Holt's model 55

3.6 Job search and the Phillips curve in Phelps' interpretation 61

3.7 Further observations on the job search theory and the Phillips curve 63

3.8 Closing remarks 65

4 The Phillips curve and stagflation 67

4.2 Grubb, Jackman and Layard's approach to stagflation: the conflict-augmented Phillips curve 67

4.3 Slow growth, conflict and inflation 71

4.4 The Phillips curve and income policy: a general assessment 73

4.5 A classification of income policies 78

4.6 The Phillips curve, income policies and the system of industrial relations 81

4.7 A further criticism of NRU theory: the decreasing long-term Phillips curve 84

5 Unorthodox interpretations of the Phillips curve 89

5.2 Rowthorn's model 89

5.3 The Rowthorn model with adaptive expectations 96

5.4 A model a la Rowthorn with rational expectations 99

5.5 A Phillips curve with Kaleckian characteristics 104

5.6 On Kalecki's theory and the Phillips curve 110

6 Phillips curve, hysteresis and Keynesian theory 119

6.2 NAIRU versus NRU 119

6.3 Changes in the equilibrium rate of employment: some supporting evidence 122

6.4 Hysteresis theory and the Phillips curve 125

6.5 Is hysteresis compatible with the theory of the natural rate of unemployment? 132

6.6 Hysteresis: two consequences 134.

Notes:

Includes bibliographical references (pages 142-157) and index.

ISBN:

1858984572

OCLC:

39455963