In a one good one input economy with wages being somewhat sticky, one can see why there could be a Phillips curve as the Fed first increases and then decreases inflation.
Nice post. It's interesting that, for all his fulminations against the representative agent, the "representative good" and "representative wage earner" problem you point to goes right back to Robert Solow's aggregate production function. He clearly did not like its being tricked out via the Cass-Koopmans-Ramsay model; he liked even less the production function's use as a hapless pillar of RBC and New Keynesian models. If he could read your post, he would have said, maybe, "As this shows, toy models should stay home."
There is an atavic attachement to the Phillips Curve by prominent economists. Even after they die, their "legacy" will live on...
https://marcusnunes.substack.com/p/the-mirage-of-spiking-unemployment
In a one good one input economy with wages being somewhat sticky, one can see why there could be a Phillips curve as the Fed first increases and then decreases inflation.
Nice post. It's interesting that, for all his fulminations against the representative agent, the "representative good" and "representative wage earner" problem you point to goes right back to Robert Solow's aggregate production function. He clearly did not like its being tricked out via the Cass-Koopmans-Ramsay model; he liked even less the production function's use as a hapless pillar of RBC and New Keynesian models. If he could read your post, he would have said, maybe, "As this shows, toy models should stay home."
As a long run growth model it's fine. It just not useful t try making it into a macroeconomic model.