In a comment on my previous post about supposedly vertical long run Phillips Curve, Richard Lipsey mentioned a paper he presented a couple of years ago at the History of Economics Society Meeting: “The Phillips Curve and the Tyranny of an Assumed Unique Macro Equilibrium.” In a subsequent comment, Richard also posted the abstract to his paper. The paper provides a succinct yet fascinating overview of the evolution macroeconomists’ interpretations of the Phillips curve since Phillips published his paper almost 60 years ago.
The two key points that I take away from Richard’s discussion are the following. 1) A key microeconomic assumption underlying the Keynesian model is that over a broad range of outputs, most firms are operating under conditions of constant short-run marginal cost, because in the short run firms keep the capital labor ratio fixed, varying their usage of capital along with the amount of labor utilized…
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Utopia, you are standing in it! 
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