My Journeys in Economic Theory

Edmund Phelps is among the most important economists of his generation. He developed a new understanding of unemployment and inflation and went on to rethink the roots of innovation. His work represents a lifelong project to put people as we know them into economic theory. In this book, Phelps tells the story of his role in reshaping economic theory, offering a powerful personal account of a creative and rewarding career. My Journeys in Economic Theory charts two major phases of Phelpss work, illuminating the breadth of his contributions to the field. First, introducing the expectations of wage setters and cofounding the equilibrium rate of unemployment, he built the microeconomic foundations for the employment theory pioneered by Keynes and Hicks. More recently, he conceived a theory of mass flourishing superseding Schumpeter and Solows conception of the process of innovatinga theory in which individuals creativity and societys dynamism fuel grassroots innovation and generate job satisfaction in the process. Phelps recounts his vivid experiences in the world of economicsfierce arguments, competition and collaboration, and the good fortune of time spent among some great figuresas well as his relationships with luminaries such as John Rawls, Thomas Nagel, Paul Samuelson, and Paul Volcker. At its core, this book shares the joy of intellectual achievement: the excitement of coming up with a new idea that radically departs from prevailing views and the satisfaction of exercising ones own ingenuity instead of applying or developing others models. Telling the story of a life packed with intellectual adventure, My Journeys in Economic Theory provides a profound vision of a dynamic, modern economy that offers lives rich with creativity and meaning.