THE “PLACE OF THE PHILLIPS CURVE” IN MACROECONOMETRIC MODELS: THE CASE OF THE FIRST FEDERAL RESERVE BOARD’S MODEL (1966-1980S)

In the article I examine how model builders from the academia and from the Federal Reserve Board confronted with the Phillips curve in the construction and subsequent modifications of the Federal Reserve, MIT and University of Pennsylvania macroeconometric model. It is argued that academic debates on Friedman’s and Phelps’ accelerationist hypothesis, and the subsequent evolution of the macroeconomics discipline, did not affect the model building agenda at the Research and Statistics Division of the Board over the 1970s and 1980s.