BPEA | 1971 No. 2

Phillips-Type Approach or Acceleration?

William Fellner
William Fellner American Enterprise Institute

1971, No. 2

IN THE CONTROVERSY OVER MODELS of inflation, I lean toward the accelerationist view. Two important recent contributions to the debate, by R. J. Gordon and George Perry, reported in this journal, have developed arguments on the other side by constructing Phillips-type models and by estimating their parameters from quarterly data for a period beginning in the early nineteen-fifties and ending in the late sixties. Both Gordon and Perry clearly feel that the evidence they have submitted weakens the accelerationist position. Perry, much more than Gordon, makes it clear that in the context of the Phillips debate he raises no claims beyond this. Indeed, some of the materials he presents will prove to be of considerable value quite aside from the Phillips controversy.