A NOTE ON SOLOW'S EARLY REACTION TO EXPECTATIONS-AUGMENTED PHILLIPS CURVES

In three lectures written in Oxford in 1968-69, Robert Solow used a macro model developed in collaboration with Joseph Stiglitz to question Friedman's interpretation of the Phillips curve. In the specific case where the economy may either tend to demand - or supply - limited equilibria, he considered the possibility to define multiple non-accelerating inflation rate of unemployment. By means of unedited correspondence and unpublished manuscripts from Solow's archives, the paper explores this modeling strategy with the aim to cast new light on how a prominent Keynesian in the late 1960s strived to challenge Friedman.