Samuelson and Solow on the Phillips Curve and the “Menu of Choice”: A Retrospective

Schwarzer, Johannes

doi:10.4074/s2113520713013017

Cited by 3 publications

(4 citation statements)

References 38 publications

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“… 8 For a more detailed study of the Phillips curve debate during this period, see Schwarzer (2012 and 2013). …”

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confidence: 99%

The Phillips Curve and an Assumed Unique Macroeconomic Equilibrium in Historical Context

Lipsey

2016

J Hist Econ Thought

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An early post-WWII debate concerned the most desirable demand and inflationary pressures at which to run the economy. Context was provided by Keynesian theory devoid of a full employment equilibrium and containing its mainly forgotten, but still relevant, microeconomic underpinnings. A major input came with the estimates provided by the original Phillips curve. The debate seemed to be rendered obsolete by the curve’s expectations-augmented version with its natural rate of unemployment, and associated unique equilibrium GDP, as the only values consistent with stable inflation. The current behavior of economies with the successful inflation targeting is inconsistent with this natural-rate view, but is consistent with evolutionary theory in which economies have a wide range of GDP-compatible stable inflation. Now the early post-WWII debates are seen not to be as misguided as they appeared to be when economists came to accept the assumptions implicit in the expectations-augmented Phillips curve.

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“… 8 For a more detailed study of the Phillips curve debate during this period, see Schwarzer (2012 and 2013). …”

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confidence: 99%

The Phillips Curve and an Assumed Unique Macroeconomic Equilibrium in Historical Context

Lipsey

2016

J Hist Econ Thought

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“…23 This theory was further examined and substantiated by Samuelson and Solow, using empirical date from the United States covering the period 1900 to 1960. 24 The Phillips theory is illustrated by the following curve, known as the Phillips curve: The horizontal line represents the workforce unemployment rate, the vertical line inflation. With low unemployment, inflation is high.…”

Section: The Phillips Theorymentioning

confidence: 99%

The Role of Zakat in Overcoming Inflation and Unemployment: Revisiting the Trade-Off Theory

Antonio¹,

Ali²,

Firdaus³

2021

ICR Journal

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The present study aims to examine the role of zakat in addressing unemployment and inflation, while also revisiting A.W. Phillips’ trade-off theory. The study adopts a qualitative methodology, using library research to critically analyse how zakat could address unemployment and inflation. The study argues that the optimal application of zakat could overcome the issue of unemployment while maintaining price stability. This is true since zakat can be distributed in two forms: consumptive and productive. Therefore, an increase in aggregate demand will always be followed by a rise in aggregate supply; the distribution of zakat in the consumptive form will increase aggregate demand, while the distribution of zakat for a productive purpose will increase aggregate supply. An increase in aggregate demand would in turn increase production, thus absorbing more labour as a result. This is where zakat addresses unemployment. On the other hand, a rise in aggregate demand will initially inflate the aggregate price. However, since the increase in aggregate demand is simultaneously followed by an increase in aggregate supply due to the distribution of zakat in its productive form, the price remains stable. Aggregate demand and aggregate supply cross at an equilibrium point. More importantly, the price is stable while the quantity of production is at its highest level. The findings of the study serve as a reference point for regulators formulating fiscal policy embedded in the zakat system.

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“… 1 James Forder (2015) critiques textbook uses of the Curve. The policy importance of the Curve in practice is more controversial; e.g., see Forder (2010) and Schwarzer (2013). …”

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confidence: 99%

“… 23 While they offer a trade-off view, there is debate about whether they saw this as stable in the long run, and whether they adopt a menu approach to policy applications (Schwarzer 2013). …”

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A. J. Brown, “Phillips’s Curve,” and Economic Networks in the 1950s

Button

2018

J Hist Econ Thought

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This paper examines the role of the English economist Arthur (A. J.) Brown in the 1950s debate surrounding the wage-rate change/unemployment relationship. While the publication of William (Bill) Phillips’s 1958 paper and the subsequent moniker of the “Phillips Curve” attracted a wealth of attention, Brown’s book on the subject, The Great Inflation, and his later work on inflation have received much less. Here, the focus is on redressing this situation somewhat by looking at Brown’s work to see how much it predates Phillips’s paper, and what differences there are to it. We also consider this within the changing institutional structure of English economic networks in the 1950s that led to a relatively rapid acceptance of Phillips’s analysis and, in many cases, to a strong, ordinal interpretation of the Phillips Curve that overshadowed Brown’s work.

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Samuelson and Solow on the Phillips Curve and the “Menu of Choice”: A Retrospective

Cited by 3 publications

References 38 publications

The Phillips Curve and an Assumed Unique Macroeconomic Equilibrium in Historical Context

The Phillips Curve and an Assumed Unique Macroeconomic Equilibrium in Historical Context

The Role of Zakat in Overcoming Inflation and Unemployment: Revisiting the Trade-Off Theory

A. J. Brown, “Phillips’s Curve,” and Economic Networks in the 1950s

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