Comment on Edmund S. Phelps on ‘Nothing Natural About the Natural Rate of Unemployment’
Blog-Reference and Blog-Reference and Blog-Reference on Nov 4
Edmund Phelps summarizes: “What explains the paradox of low unemployment despite low inflation (or vice versa)? So far, economists ― structuralists as well as diehard Keynesians ― have been stumped.”
The paradox is explained by the fact that the concept of the Phillips Curve has been messed up back in the 1960s by both structuralists and diehard Keynesians.
For details see
• NAIRU, wage-led growth, and Samuelson’s Dyscalculia
• Keynes’ Employment Function and the Gratuitous Phillips Curve Disaster
• Putting economic policy on scientific foundations
The Phillips Curve is for 50+ years one of the conspicuous landmarks of the failed science economics and Edmund Phelps is still way behind the curve.
Related 'How MMT got inflation wrong' and 'A la recherche de l'inflation perdue' and 'Forget Friedman, forget Keynes' and 'New Economic Thinking: the 10 crucial points' and 'Laying the bastard Phillips Curve to rest' and 'Macrofounded labor market theory' and 'The minimum wage debate: a showpiece of economists’ hereditary idiocy' and 'The role of labor and business in a well-organized society' and 'Rethinking the Phillips curve (I)'. For more details of the big picture see cross-references Employment/Phillips Curve.