Short-Run and Long-Run Effects of Milton Friedman's Presidential AddressRobert E. Hall, Thomas J. Sargent
NBER Working Paper No. 24148 The immediate effect of Friedman's 1968 AEA presidential address on the economics profession was the introduction of an adaptive term in the Phillips curve that shifted the curve, as Friedman proposed, based on expected inflation. Initial formulations suggested that the shift was less than point-for-point, but later thinking, based on the emerging idea of rational expectations, together with the experience of the 1970s, came to agree with Friedman that the shift was by the full amount. The profession also recognized that Friedman's point was deeper---real outcomes are invariant to the monetary policy rule, not just to the trend in inflation. The presidential address made an important contribution to the conduct of monetary policy around the world. It ushered in low and stable inflation rates in all advanced countries, and in many less advanced ones. You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.
Machine-readable bibliographic record - MARC, RIS, BibTeX Document Object Identifier (DOI): 10.3386/w24148 Published: Robert E. Hall & Thomas J. Sargent, 2018. "Short-Run and Long-Run Effects of Milton Friedman's Presidential Address," Journal of Economic Perspectives, vol 32(1), pages 121-134. Users who downloaded this paper also downloaded* these:
|

Contact Us