Tesfaselassie, Mewael F. - Institut für Weltwirtschaft (IfW) - 2014
model's prediction. In the presence of nominal price rigidity faster growth is shown to lead to lower unemployment if the … rate of inflation is relatively high, as was the case in the 1970s. In general, the effect of growth on unemployment is … shown to be non-monotonic. There is a threshold level of inflation below (above) which faster growth leads to higher (lower …