Introduction

40 years ago, Lucas and Sargent (1978) pointing to stagflation, attacked Keynesian macroeconomics asking what would come “after Keynesian macroeconomics”. Since then, the Phillips curve This paper argues that the sticky-price, IS-LM version of macroeconomics, was indeed disproved by the coexistence of inflation and unemployment. However, the New-Keynesian school argues that expectations of inflaytion changed…

Geerolf (2018) and Geerolf (2019)

Robinson (1974)

Summers (1991)

References

Geerolf, François. 2018. “The Phillips Curve: Price Levels or Real Exchange Rates?” UCLA Working Paper. https://fgeerolf.com/phillips.pdf.

———. 2019. “A Theory of Demand Side Secular Stagnation.” UCLA Working Paper. https://fgeerolf.com/hansen.pdf.

Lucas, Robert E., and Thomas J. Sargent. 1978. “After Keynesian Macroeconomics.” In Federal Reserve Bank of Boston, 49–72.

Robinson, Joan. 1974. “What Has Become of the Keynesian Revolution?” Challenge 16 (6): 6–11. https://doi.org/10.1080/05775132.1974.11470016.

Summers, Lawrence H. 1991. “Should Keynesian Economics Dispense with the Phillips Curve?” In Issues in Contemporary Economics, 3–20. International Economic Association Series. Palgrave Macmillan, London. https://fgeerolf.com/phillips/bib/Summers1991.pdf.

Appendix

A Proofs

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