Long-Run Inflation-Unemployment Dynamics: The Spanish Phillips Curve and Economic Policy

Dennis Snower, Marika Karanassou (m.karanassou@qmul.ac.uk) and Hector Sala

No 3690, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: 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 theoretical models 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.

Keywords: Inflation-unemployment tradeoff; Phillips curve; Staggered wage contracts; Nominal inertia; Forward-looking expectations; Monetary policy (search for similar items in EconPapers)
JEL-codes: E20 E30 E40 E50 J30 (search for similar items in EconPapers)
Date: 2003-01
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Long-run inflation-unemployment dynamics: The Spanish Phillips curve and economic policy (2008)
Working Paper: Long-run inflation-unemployment dynamics: The Spanish Phillips curve and economic policy (2008)
Working Paper: Long-run inflation-unemployment dynamics: The Spanish Phillips curve and economic policy (2008)
Working Paper: Long-run inflation-unemployment dynamics: The Spanish Phillips curve and economic policy (2007)
Working Paper: Long-Run Inflation-Unemployment Dynamics: The Spanish Phillips Curve and Economic Policy (2002)
Working Paper: Long-Run Inflation-Unemployment Dynamics: The Spanish Phillips Curve and Economic Policy (2002)
Working Paper: Long-run Inflation-Unemployment Dynamics: The Spanish Phillips Curve and Economic Policy (2002)
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