Abstract
Philip Arestis has contributed to many areas of macroeconomics and monetary economics. Those contributions have included theoretical and empirical investigations of inflation, and the development of critiques of inflation targeting, again both in the theoretical dimension and the empirical.1 The purpose of this chapter is to focus on particular aspects of inflation and inflation targeting, namely the Phillips’ curve and its role in the arguments for independence of the Central Bank and the adoption of inflation targeting. In doing so, I draw heavily on discussions and joint work with Philip over many years.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Angeriz, A. and Arestis, P. (2006) ‘Has Inflation Targeting Had Any Impact on Inflation?’ Journal of Post Keynesian Economics, Vol. 28, No 4, (Summer, 2006)
Angeriz, A. and Arestis, P. (2007), ‘Assessing the Performance of ‘Inflation Targeting Lite’ Countries’, World Economy, Vol. 30, No 11, pp. 1–25.
Angeriz, A. and Arestis, P. (2008), ‘Assessing Inflation Targeting Through Intervention Analysis’, Oxford Economic Papers, Vol. 60, No 2, pp. 293–317.
Arestis, P. (1986), ‘Wages and Prices in the UK: The Post Keynesian View’, Journal.of Post Keynesian Economics (Spring).
Arestis, P. and Biefang-Frisancho Mariscal, I. (2000), ‘Capital Stock, Unemployment and Wages in the UK and Germany’, Scottish Journal of Political Economy, Vol. 47, No 5 (November).
Arestis, P. and Sawyer, M. (2004), ‘Can monetary policy affect the real economy?’, European Review of Economics and Finance, Vol. 3, No 3, pp. 9–32.
Arestis, P. and Sawyer, M. (2005), ‘Aggregate Demand, Conflict, and Capacity in the Inflationary Process’, Cambridge Journal of Economics, Vol. 29, No 6 (October).
Arestis, P. and Sawyer, M. (2007), The Weak Foundations of the Phillips Curve, mimeo.
Arestis, P. and Sawyer, M. (2008a), ‘Price and wage determination and the inflation barrier: moving beyond the Phillips curve’, pp. 30–44, in C. Gnos and L.-P. Rochon (eds), Monetary Policy and Financial Stability: A Post-Keynesian Agenda, Cheltenham (UK): Edward Elgar.
Arestis, P. and Sawyer, M. (2008b), ‘New consensus macroeconomics and inflation targeting: Keynesian critique’, Economia e Sociedade, Campinas, v. 17, Número especial, pp. 629–54.
Bank of England (1999), Economic Models at the Bank of England, London: Bank of England.
Blanchflower, D.G. and Oswald, A.J. (1994), The Wage Curve, Cambridge, Mass.: MIT Press.
Fontana, G. (2009), ‘The “Unemployment Bias” of the New Consensus View of Macroeconomics’, pp. 131–48, in P. Arestis and J. McCombie (eds), Unemployment: Past and Present, Basingstoke (UK): Palgrave Macmillan.
Friedman, M. (1968), ‘The role of monetary policy’, American Economic Review, Vol. 58, pp. 1–17.
Galí, J. and M. Gertler (1999), ‘Inflation dynamics: a structural econometric analysis’, Journal of Monetary Economics, Vol. 44, No 2, pp.195–222.
Galí, J., Gertler, M. and López-Salido, J.D. (2005), ‘Robustness of the estimates
Goodhart, C.A.E. (2005a), ‘Safeguarding good policy practice’ in ‘Reflections on Monetary Policy 25 Years after October 1979’, Federal Reserve Bank of St Louis Review, March/April, 87(2, Part 2), pp. 298–302.
Goodhart, C.A.E. (2005b), ‘The experience of inflation targeting since 1993’, in P. Arestis, M. Baddeley and J. McCombie, The New Monetary Policy, Cheltenham: Edward Elgar.
Leeson, R. (1997), ‘The political economy of the inflation-unemployment trade-off’, History of Political Economy, Vol. 29, pp. 117–56.
Lipsey, R.G. (1960), ‘The relations between unemployment and the rate of change of money wage rates in the United Kingdom 1862–1957: A Further Analysis’, Economica, pp.1–31.
Mankiw, N.G. (2001), ‘The inexorable and mysterious tradeoff between inflation and unemployment’, Economic Journal, Vol. 111 (May), pp. C45-C61.
Phelps, E.S. (1967), ‘Phillips Curves, Expectations of Inflation and Optimal Employment over Time’, Economica, Vol. 34, No 3, 254–81.
Phillips, A.W. (1954), ‘Stabilisation Policy in a Closed Economy’, Economic Journal, Vol. 64, No 254 (June), pp. 290–323.
Phillips, A.W. (1958), ‘The relation between unemployment and the rate of change of money wages in the United Kingdom’, Economica, Vol. 25, pp. 283–9.
Samuelson, P. and Solow, R. (1960), ‘Analytical aspects of anti–inflation policy’, American Economic Review, pp. 177–94.
Sawyer, M. (2002), ‘The NAIRU, aggregate demand and investment’, Metroeconomica, Vol. 53, No 1, pp. 66–94.
Sawyer, M. (2009), ‘Interest rates and inflation: what are the links?’, Intervention, Vol. 6, No 1, pp. 83–98.
Sawyer, M. (2010), The Political Economy of the Phillips’ curve, Cheltenham: Edward Elgar, forthcoming.
Editor information
Copyright information
© 2010 Malcolm Sawyer
About this chapter
Cite this chapter
Sawyer, M. (2010). Phillips’ Curve, Independence of Central Banks and Inflation Targeting. In: Fontana, G., McCombie, J., Sawyer, M. (eds) Macroeconomics, Finance and Money. Palgrave Macmillan, London. https://doi.org/10.1057/9780230285583_8
Download citation
DOI: https://doi.org/10.1057/9780230285583_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-31043-2
Online ISBN: 978-0-230-28558-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)