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

Marika Karanassou, Hector Sala and Dennis J. Snower
Additional contact information
Marika Karanassou: Queen Mary, University of London
Dennis J. Snower: Birkbeck College

No 477, Working Papers from Queen Mary University of London, School of Economics and Finance

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: E2 E3 E4 E5 J3 (search for similar items in EconPapers)
Date: 2002-12-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.qmul.ac.uk/sef/media/econ/research/wor ... 2002/items/wp477.pdf (application/pdf)

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 (2003)
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qmw:qmwecw:477

Access Statistics for this paper

More papers in Working Papers from Queen Mary University of London, School of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Nicholas Owen ( this e-mail address is bad, please contact ).