A Note on the "Accelerationist" Controversy

Here Frt is the public's anticipated rate of commodity price inflation, wt is the wage rate at time t, Ut is the unemployment rate, andf(Ut, * * * ) is the shortrun Phillips curve with Af/d U < O and with the sequence of dots representmg a list of other variables; st is an unobservable random variable. In order to implement (1) empirically, an observable proxy for 7rt must be obtained. Almost always this requirement is filled by using the Fisher-Cagan2 equation