The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Phelps, Edmund (Born 1933)

  • Gylfi Zoega
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2035

Abstract

Edmund Phelps is a Nobel Prize winner in economics who has contributed to our understanding of the supply side of the macroeconomy. He showed that there is no stable trade-off between inflation and unemployment. He derived the socially optimal level of saving and the socially optimal level of research into new technologies and showed how technological progress depended on the size of the population and its level of education. In recent years, Phelps has developed models of the equilibrium unemployment rate, what he calls structural unemployment, that can explain the long swings of unemployment as well as differences across countries.

Keywords

Asymmetric information Demand shocks Dynamic inefficiency Economic growth in the very long run Education Efficiency wages Endogenous growth theory Expectations Golden rule Hyperbolic preferences Hysteresis Imperfect information Inflation expectations Intertemporal investment Learning Lucas, R Matching Microfoundations Monetary shocks Natural rate of unemployment Natural rate of unemployment New classical economics New Keynesian macroeconomics Path dependence Phelps, E.S Phillips curve Productivity growth Rational expectations Stabilization policy Statistical discrimination Structural unemployment Technical change Unemployment–inflation trade-off 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Gylfi Zoega
    • 1
  1. 1.