Long-run inflation-unemployment dynamics: The Spanish Phillips curve and economic policy

Arbeitspapier

This paper takes a new look at the long-run dynamics of inflation and unemployment in response to permanent changes in the growth rate of the money supply. We examine the Phillips curve from the perspective of what we call "frictional growth," i.e. the interaction between money growth and nominal frictions. After presenting a theoretical model of this phenomenon, we construct an empirical model of the Spanish economy and, in this context, we evaluate the long-run inflation-unemployment tradeoff for Spain and examine how recent policy changes have affected it.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 477

Classification and Topics

• Classification: Wirtschaft
• Subject: Inflation-unemployment tradeoff ; Phillips curve ; staggered wage contracts ; nominal inertia ; forward-looking expectations ; monetary policy ; Unit Root Test ; Strukturbruch ; Monte-Carlo-Methode ; Phillips-Kurve ; Geldmengensteuerung ; Spanien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Karanassou, Marika ; Sala, Héctor ; Snower, Dennis J.
• Event: Veröffentlichung
• (who): Queen Mary University of London, Department of Economics
• (where): London
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/3112
• Last update: 10.03.2025, 11:43 AM CET