A model of macroeconomic outcomes is developed in which money and aggregate demand matter, inflation is the outcome of conflicting nominal income claims, and institutions create relatively enduring “conditional closures†in otherwise open macroeconomic processes. This model is used to...

This paper provides an institutional-analytical account of changes in the structure of the US Phillips curve (PC) during the post-war period. It does so by restoring conflict and power to the forefront of macro theory and, in particular, the wage- and price-setting behaviour of workers and...