**"Aggregate Price Changes and Price Expectations,"**
*Federal Reserve
Bank of St. Louis Review,* November 1970, 18-28.

pdf file (1,758KB).

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This paper discusses the basic price equation in my forecasting model--see 1971#5. On page 19 of this paper it is noted that the price equation is a reduced form equation in that the wage rate is not an explanatory variable in the price equation. The use of reduced form price equations was popularized by Robert Gordon beginning in the early 1980s (see, for example, Robert J. Gordon, "Comments on George L. Perry, 'Inflation in Theory and Practice,'",