GSTF Journal on Business Review (GBR)

, 3:8

First online:

Open Access This content is freely available online to anyone, anywhere at any time.

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

  • Özlen Hiç BirolAffiliated withİstanbul UniversityWisconsin International UniversityThe Economics Department, Bogazici University Email author 


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”.


adaptive expectations phillips curve