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The historical place of the 'Friedman—Phelps' expectations critique

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  • James Forder

Abstract

The 'expectations critique', usually attributed to Friedman or Phelps and dated towards the end of the 1960s, in fact originates much earlier. And rather than being an insight properly attributable to a particular individual, it was, by that time, a commonplace of economic discussion. This much is easy to establish. It is argued that the common attribution arises at least in part because the Keynesians unwisely chose to express their disagreement with Freidman in terms of expectations rather than in terms of the existence of the natural rate of unemployment. As a result, 40 years later, it has become hard to see that two separate points ever existed.

Suggested Citation

  • James Forder, 2010. "The historical place of the 'Friedman—Phelps' expectations critique," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 17(3), pages 493-511.
  • Handle: RePEc:taf:eujhet:v:17:y:2010:i:3:p:493-511
    DOI: 10.1080/09672560903114875
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    References listed on IDEAS

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    1. G. D. N. Worswick, 1958. "Prices, Productivity, And Incomes," Oxford Economic Papers, Oxford University Press, vol. 10(2), pages 246-264.
    2. Vasilev, Aleksandar & Maksumov, Rashid, 2010. "Critical analysis of Chapter 23 of Keynes’s Notes on Mercantilism in The General Theory of Employment, Interest and Money (1936)," EconStor Research Reports 155318, ZBW - Leibniz Information Centre for Economics.
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    Cited by:

    1. Roger E. Backhouse, 2013. "Responding to economic crisis: macroeconomic revolutions in the 1930s and 1970s," Chapters, in: Mats Benner (ed.), Before and Beyond the Global Economic Crisis, chapter 2, pages 38-54, Edward Elgar Publishing.
    2. Gerunov, Anton, 2014. "Критичен Преглед На Основните Подходи За Моделиране На Икономическите Очаквания [A Critical Review of Major Approaches for Modeling Economic Expectations]," MPRA Paper 68797, University Library of Munich, Germany.
    3. Ioannidis, Yiorgos, 2011. "Employment in the Keynesian and neoliberal universe: theoretical transformations and political correlations," MPRA Paper 45062, University Library of Munich, Germany.
    4. James Forder, 2016. "What was the message of Friedman," Economics Series Working Papers 814, University of Oxford, Department of Economics.

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    More about this item

    Keywords

    Phillips curve; expectations; Friedman; wage bargaining;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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