Karanassou, Marika; Sala, Hector; Snower, Dennis J. - 2021
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 …