“Adaptive Expectations” of Milton Friedman and Monetarists and Phillips Curve; And the Comparison of them with Other Macroeconomic Schools

Abstract

The focus of this article is the “adaptive expectations
hypothesis” of Milton Friedman and his analysis of short-run and
long-run Phillips Curve. In order to analyze these contributions
of M. Friedman more clearly, discussions about the Phillips
Curve and different views about this issue according to various
macroeconomic schools and information about the evolution of
the Phillips Curve Analysis are given. In this sense, apart from
Milton Friedman and Monetarists, Phillips Curve was analyzed
in a successive order compatible with the history of discussion
within Keynes and Keynesian economics, New Keynesian
Economics and New Classical School operating with “rational
expectations hypothesis”.