Karanassou, Marika; Sala, Héctor; Snower, Dennis J. - 2002
This paper offers a reappraisal of the inflation-unemployment tradeoff, based on "frictional growth," describing the … interplay between nominal frictions and money growth. When the money supply grows in the presence of price inertia (due to … able to work themselves out fully. In this context, monetary shocks have a gradual and delayed effect on inflation and …