The ‘Place of the Phillips Curve’ in Macroeconometric Models : The Case of the Fed Board’s Model (1966–1980s)

The article reconstructs how the Phillips curve was embedded into the Fed-MIT-Penn macroeconometric model of the late 1960s. My aim is to integrate James Forder's (2014) narrative about the Phillips curve myth by looking at the macroeconometric model that should have been devoted to guide the Fed Board monetary policy. It is argued that the academic debate on the vertical Phillips curve did not affect the building of the wage and price block, which remained almost unchanged throughout the 1970s and 1980s