Wage-Price Controls and the Shifting Phillips Curve

  title={Wage-Price Controls and the Shifting Phillips Curve},
  author={Robert J. Gordon},
THE CONDITION OF THE U.S. ECONOMY improved in almost every respect after the initiation of the wage-price control program on August 15, 1971. Real gross national product grew rapidly, unemployment finally began to decline, and the rate of inflation moderated. But the coincidence of timing does not necessarily mean that controls are an essential condition for prosperity, or that the August 1971 message was the key that unlocked the floodgates behind which real aggregate demand had been… 

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