Phillips Curve and the Equalibrium Unemployment Rate

Guay Lim, Robert Dixon and Sarantis Tsiaplias

No 1070, Department of Economics - Working Papers Series from The University of Melbourne

Abstract: A time-varying Phillips curve was estimated as a means to examine the changing nature of the relationship between wage inflation and the unemployment rate in Australia. The implied time-varying equilibrium unemployment rate was generated and the analysis showed the important role played by variations in the slope of the Phillips curve in changing the equilibrium unemployment rate. The deviations of actual unemployment rates from the estimated equilibrium unemployment rates also performed remarkedly well as measures of inflationary pressure.

Keywords: Phillips curve; equilibrium unemployment rate; inflation (search for similar items in EconPapers)
JEL-codes: E24 E31 E32 E52 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2009
New Economics Papers: this item is included in nep-cba, nep-lab and nep-mac
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Citations: View citations in EconPapers (1)

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Journal Article: Phillips Curve and the Equilibrium Unemployment Rate (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:mlb:wpaper:1070

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