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dc.contributor.authorKaranassou, Marikaen_US
dc.contributor.authorSala, Héctoren_US
dc.contributor.authorSnower, Dennis J.en_US
dc.date.accessioned2009-01-28T14:17:16Z-
dc.date.available2009-01-28T14:17:16Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/3856-
dc.description.abstractThe conventional wisdom that inflation and unemployment are unrelated in the long-run implies that these phenomena can be analysed by separate branches of economics. The macro literature tries to explain inflation dynamics and estimates the NAIRU. The labour macro literature tries to explain unemployment dynamics and determine the real economic factors that drive the natural rate of unemployment. We show that the orthodox view that the New Keynesian Phillips curve is vertical in the long-run and that it cannot generate substantial inflation persistence relies on the implausible assumption of a zero interest rate. In the light of these results, we argue that a holistic framework is needed to jointly explain the evolution of inflation and unemployment.en_US
dc.language.isoengen_US
dc.publisherForschungsinstitut zur Zukunft der Arbeit, Bonn-
dc.relation.ispartofseriesIZA Discussion paper series 2265en_US
dc.subject.jelE24en_US
dc.subject.jelE31en_US
dc.subject.ddc330-
dc.subject.keywordNatural rate of unemploymenten_US
dc.subject.keywordNAIRU-
dc.subject.keywordNew Keynesian Phillips Curve-
dc.subject.keywordInflation-unemployment tradeoff-
dc.subject.keywordInflation dynamics-
dc.subject.keywordUnemployment dynamics-
dc.titlePhillips curves and unemployment dynamics: A critique and a holistic perspectiveen_US
dc.typeWorking Paperen_US
dc.identifier.ppn516439901en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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