EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Economists Online >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/3096
  
Title:The European Phillips curve: Does the NAIRU exist? PDF Logo
Authors:Karanassou, Marika
Sala, Héctor
Snower, Dennis J.
Issue Date:2003
Citation:[Series:] Discussion paper [Editor:] Centre for Economic Policy Research, London [No.:] 4102
Series/Report no.:CEPR Discussion paper series / Centre for Economic Policy Research 4102
Abstract:This paper has two aims. First, it provides simple theoretical models that highlight two channels whereby monetary shocks have permanent real effects and the interactions between these channels. Second, it presents an empirical dynamic model, covering a panel of EU countries, and derives the implied long-run inflation-unemployment tradeoff. Our results suggest that the tradeoff is far from vertical. We also find that wage persistence plays a larger role than price persistence in generating the tradeoff, but that the two forms of persistence are complementary in giving monetary policy its long-run real effects. Our results call for a reassessment of the European macroeconomic experience.
JEL:E2
E3
E4
E5
J3
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Economists Online

Files in This Item:
File Description SizeFormat
375348581.pdf497.25 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/3096

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.