A review of the two competing paradigms explaining inflation and unemployment fluctuations singles out the Keynesian Phillips curve as the clear empirical winner over its classic competitors. Reestimation of the Canadian Phillips curve for 1957-90 identifies a sharp structural shift toward a...

This Memorial Lecture in honour of the late John Graham has three parts. First, it explains why Keynes criticized classical views about the business cycle in the 1930s, and how his ideas revolutionized the field and influenced macroeconomic policy until the mid-1960s. Second, the lecture...

The basis for central bank policy aimed at price stability is the view that the benefits from very low inflation are "large and permanent," and that the related unemployment costs are "small and temporary." I question this belief in three ways: first, I point out that the quantitative evidence...