Friedman Phelps. Is never below its natural rate b. An article written the same year by economist edmund phelps constituted an additional surgical strike and taken together the friedman phelps fusillade would leave macroeconomics forever changed.
Their phillips curve was vertical in the long run at the natural unemployment rate and their short run curve shifted up whenever unemployment was pushed below the natural rate. According to this model unemployment persistence is caused by delays in the flow of information generated endogenously in the model by the inflationary or deflationary surprises. Is never below its natural rate b.
Their phillips curve was vertical in the long run at the natural unemployment rate and their short run curve shifted up whenever unemployment was pushed below the natural rate.
Is below its natural rate when actual inflation is greater than expected inflation. Phelps sought to explain the phenomenon of stagflation or the instability of the phillips curve in terms of inflationary expectations. An article written the same year by economist edmund phelps constituted an additional surgical strike and taken together the friedman phelps fusillade would leave macroeconomics forever changed. According to friedman and phelps the unemployment rate.
