Structural change in the US Phillips curve, 1948-2021: the role of power and institutions
Setterfield, Mark ; Blecker, Robert A.
Institut für Makroökonomie und Konjunkturforschung, Düsseldorf
IMK - Düsseldorf
2022
30 p.
inflation ; unemployment ; structural change
FMM Working Paper
75
Economics
https://www.boeckler.de/en/faust-detail.htm?sync_id=HBS-008240
English
Bibliogr.
"This paper provides an institutional-analytical account of changes in the structure of the US Phillips curve (PC) during the post-war period. It does so by restoring conflict and power to the forefront of macro theory and, in particular, the wage- and price-setting behaviour of workers and firms. The resulting account is consistent with the main stylized facts that characterize the evolution of the US PC since 1948: the disappearance and subsequent reappearance of a 'standard' PC (relating the level of the inflation rate, not the change in this rate, to the rate of unemployment); and the flattening of the PC since the 1990s."
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