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He attended public schools, earned his B.A. Born in 1933, he spent his childhood in Chicago and, from age six, grew up in Hastings-on Hudson, N.Y. The trade-off between inflation and unemployment did not apply in the long run. Edmund Phelps is an American professor of political economy at Columbia University and winner of the 2006 Nobel Prize in Economics. The short-run Phillips curve shifts left and unemployment is unchanged. from Amherst (1955) and got his Ph.D. at Yale (1959). In the late '70s, Professor Phelps researched with Roman Frydman, who was taught by Phelps. They worked on rational expectations and showed problems in it. Edmund Phelps, the winner of the 2006 Nobel Prize in Economics, is Director of the Center on Capitalism and Society at Columbia University. under Rational Expectations Edmund S. Phelps and John B. Taylor Columbia University The potential of monetary policy to stabilize fluctuations in output and employment is demonstrated in a stochastic rational expectations model in which firms choose, considering average profitability, to set prices in advance of the period when they apply to goods sold. A book was published in 1983 about what people said at a big meeting they had to talk about rational expectations in 1981. This claim is consistent with monetary neutrality in the long run.