Unemployment and Inflation in Ireland: 1926-2012

Stefan Gerlach, Reamonn Lydon () and Rebecca Stuart

No 10567, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We study the determination of Irish inflation between 1926 and 2012. The difference between unemployment and the NAIRU is a significant determinant of inflation in a simple backward-looking Phillips Curve that incorporates import prices. While there is a break in 1979-80, when the link to Sterling was abandoned, this effect is present in the full sample and in the subsamples spanning 1926-1979 and 1980-2012. The econometric model assumes that the NAIRU follows a random walk.

Keywords: Ireland; Historical statistics; inflation; Unemployment; Import prices (search for similar items in EconPapers)
JEL-codes: E3 E4 N14 (search for similar items in EconPapers)
Date: 2015-05
New Economics Papers: this item is included in nep-his and nep-mac
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Citations: View citations in EconPapers (2)

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Working Paper: Unemployment and inflation in Ireland: 1926-2012 (2015)
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