Around 50 years ago, Edmund Phelps and Robert Lucas proposed an answer to the question why changes in aggregate nominal spending bring about output and employment effects, instead of purely proportional variations in prices. The Phelps-Lucas monetary misperception hypothesis asserted that...

Erik Lindahl's approach to macroeconomics focused on the non-neutrality of monetary policy (in the short and the long run) and on the denial of the existence of natural rates of interest and unemployment. From the 1920s until his death in 1960, Lindahl advocated the use of norms for monetary...

The paper investigates the role played by Friedman’s interpretation of the Brazilian inflation in his 1967 formulation of the natural rate hypothesis and in his 1976 discussion of indexation and other institutional arrangements in the face of chronic inflation. It is argued that, as an...