Keynes and the Keynesian Phillips Curve: Further Evidence

Abstract

This paper argues that the inflation-unemployment trade-off is not a policy proposition that can be found in Keynes' writings. The policy of tolerating ongoing inflation (as opposed to a reflationary once-and-for-all increase in the price level), in the hope that unemployment will be reduced, should, therefore, be described as 'Pseudo-Keynesian;' creating unemployment to reduce inflation should be described as 'Anti-Keynesian.' Evidence is cited from Keynes' Collected Writings to support the proposition that Keynes was a "non-flationist," one of the major themes of his career.

JEL Classification: B31, E17