Learn Before
Friedman's 1967 AEA Presidential Address
In his presidential address to the American Economic Association in December 1967, Milton Friedman explained the mechanism behind the shifting Phillips curve. He argued that changes in public expectations about inflation were the primary driver for this shift and used recent economic data from the United States to support his influential critique.
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Economics
Economy
Ch.4 Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
Science
Introduction to Macroeconomics Course
Learn After
A policymaker claims, "By permanently increasing the rate of inflation, we can achieve a permanently lower rate of unemployment." An economist challenges this, arguing that the public's expectations of future inflation are the primary driver of the relationship between these two variables. Which of the following statements best represents the economist's critique of the policymaker's claim?
The Enduring Impact of the 1967 Expectations Critique
The Temporary Trade-off
Interpreting Economic Data