The economics of worldwide stagflation: A review essay☆

The last fifteen years have witnessed dramatic changes in economics, not only in the manner in which the economics profession views economics but also in the manner in which the general public views economics and economists. By the late 1960’s there had emerged more or less a consensus macroeconomic framework that is, an agreed upon structure to be used to study economic problems at the aggregate level. Robert Solow stated, as quoted in Leijonhufvud (1968):