Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/158562
Authors: 
Hawkins, Raymond J.
Nguyen, Chau N.
Year of Publication: 
2017
Series/Report no.: 
Economics Discussion Papers 2017-20
Abstract: 
The authors solve the IS puzzle for the G7 countries. They find that five of the G7 countries have the expected significant negative relationship between the output gap and the realrate gap; the time series of the remaining two show material deviation from expected IScurve behavior. The authors show that the observed time dependence of the interaction between the output and real-rate gaps can be represented in a parsimonious and practical manner using the theory of anelasticity that unifies partial-adjustment specifications of the IS curve.
Subjects: 
macroeconomics
IS curve
inflation
anelasticity
JEL: 
C22
E3
E32
E52
E61
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

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