We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Stabilization Theory and Policy: 50 Years after the Phillips Curve.
- Authors
TURNOVSKY, STEPHEN J.
- Abstract
This paper discusses the impact of A. W. H. Phillips' seminal contributions to stabilization policy on subsequent developments in that field. We review the policy rules introduced by Phillips and show how these relate to the optimal rules emerging from linear-quadratic optimization problems. The consequences of rational expectations for the design of optimal stabilization policy are discussed. These challenges arose from the role of 'forward-looking' variables, through issues such as the 'Lucas Critique' and the 'time consistency' of policy. The paper also discusses some of the contemporary aspects of stabilization policy, thereby highlighting the durability of Phillips' contributions.
- Subjects
PHILLIPS curve; PHILLIPS, A. W. H.; ECONOMIC stabilization; NATIONAL income; AGGREGATE demand; PRODUCTION (Economic theory); ECONOMIC impact of public spending; MONETARY policy; FISCAL policy
- Publication
Economica, 2011, Vol 78, Issue 309, p67
- ISSN
0013-0427
- Publication type
Article
- DOI
10.1111/j.1468-0335.2009.00807.x