Inflation and Macroeconomics in the US during the Golden Age.

This paper reviews interpretations of the moderate inflation observed in the US during the 1950s and early 1960s. In this period, moderate and persistent inflation disconcerted economists and challenged policymakers. The opposition between demandpull and costpush views stimulated different interpretations, as sectorial demandshift inflation theory and the modified Phillips curve. As policy targeted growth and employment, incomes policy was applied to contain inflation. The paper provides an overview of explanations to the moderate inflationary process in light of the historical events of the Golden Age of capitalism. [Publisher's text].