Increasing returns to scale and the long-run Phillips curve

Andrea Vaona and Dennis J. Snower

No 1277, Kiel Working Papers from Kiel Institute for the World Economy

Abstract: A growing body of empirical evidence shows that there exists a long-run positive tradeoff between inflation and real macroeconomic activity. Within a New Keynesian framewok, we examine how increasing returns generate a positive long-run relation between inflation and output.

Keywords: Inflation; Increasing returns; Nominal inertia; Monetary policy; Phillips curve (search for similar items in EconPapers)
JEL-codes: E20 E3 E40 E50 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (3)

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Journal Article: Increasing returns to scale and the long-run Phillips curve (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1277

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