quality:corruption, structural:scholar_edition, quality:correction
Early Keynesianism and monetarism

Explanations for the shift of the Phillips curve were initially provided by the monetarist economist Milton Friedman, and also by Edmund Phelps. Both argued that when workers and firms expect more inflation, the Phillips curve shifts up (meaning that more inflation occurs at any given level of unemployment). In particular, they suggested that if inflation lasted for several years, workers and firms would start to take it into account during wage negotiations, causing workers' wages and firms' costs to rise more quickly, thus further increasing inflation. While this idea was a criticism of early Keynesian theories, it was gradually accepted by most Keynesians, and has been incorporated into New Keynesian economic models.