The ‘Place of the Phillips Curve’ in Macroeconometric Models: The Case of the Fed Board’s Model (1966–1980s)

33 Pages Posted: 3 Feb 2020

Date Written: January 9, 2020

Abstract

The article reconstructs how the Phillips curve was embedded into the Fed-MIT-Penn macroeconometric model of the late 1960s. My aim is to integrate James Forder’s (2014) narrative about the Phillips curve myth by looking at the macroeconometric model that should have been devoted to guide the Fed Board monetary policy. It is argued that the academic debate on the vertical Phillips curve did not affect the building of the wage and price block, which remained almost unchanged throughout the 1970s and 1980s.

Keywords: Fed-MIT-Penn macroeconometric model, Phillips curve, stabilization policy, Friedman, Forder, Modigliani

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JEL Classification: B22

Suggested Citation

Rancan, Antonella, The ‘Place of the Phillips Curve’ in Macroeconometric Models: The Case of the Fed Board’s Model (1966–1980s) (January 9, 2020). Available at SSRN: https://ssrn.com/abstract=3517231 or http://dx.doi.org/10.2139/ssrn.3517231

Antonella Rancan (Contact Author)

University of Molise ( email )

Via De Sanctis
Campobasso, Campobasso (CB) 86100
Italy

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