Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94677
Authors: 
Axell, Bo
Lang, Harald
Year of Publication: 
1985
Series/Report no.: 
IUI Working Paper 150
Abstract: 
How are inflation and unemployment related in the long run? Are they negatively correlated, as in the so-called naive Phillips curve theories or uncorrelated, 'as in the neo-liberals' view or are they positively correlated as Friedman suggested in his Nobel lecture? In this paper inflation is introduced into a general equilibrium search unemployment model. We show that it is possible to get either a negatively or a positively sloping long-run Phillips curve, all depending on the source of inflation.
Subjects: 
Unemployment
inflation
Phillips curve
general equilibrium
JEL: 
D50
E31
J64
Document Type: 
Working Paper

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