Its "New Classical" form can be derived from the Lucas supply function, and Robert Gordon has developed a 'Triangle Model' which takes cost push, supply shocks, and other factors into account to modify it.
Its "New Classical" form can be derived from the Lucas supply function, and Robert Gordon has developed a 'Triangle Model' which takes cost push, supply shocks, and other factors into account to modify it. Blanchard and Gali have written on the 'New Keynesian' variety of it, and it can be theoretically derived from Okun's Law. It was first explicitly shown to hold in the United States by Paul Samuelson and Robert Solow, but it could not explain stagflation until Edmund Phelps and Milton Friedman showed that it is vertical in the long-run. FTP, identify this graph which shows the trade-off between unemployment and inflation, named for a New Zealand economist.
Its "New Classical" form can be derived from the Lucas supply function, and Robert Gordon has developed a 'Triangle Model' which takes cost push, supply shocks, and other factors into account to modify it.
{Phillips} curve