Publication
Jun 2007
This paper looks at the long-run dynamics of inflation and unemployment in response to permanent changes in the growth rate of the money supply. The authors examine the Phillips curve from the perspective of the interaction between money growth and nominal frictions. After presenting a theoretical model of this phenomenon, they construct an empirical model of the Spanish economy and, in this context, evaluate the long-run inflation-unemployment tradeoff for Spain and examine how recent policy changes have affected it.
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English (PDF, 28 pages, 287 KB) |
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Author | Marika Karanassou, Hector Sala, Dennis Snower |
Series | Kiel Institute Working Papers |
Issue | 1326 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2007 Kiel Institute for the World Economy |