Karanassou, Marika; Sala, Hector; Snower, Dennis J. - 2002
these shocks also generate plausible impulse-responses for unemployment. Although our theory contains no money illusion, no …This paper offers a reappraisal of the inflation-unemployment tradeoff, based on "frictional growth" describing the … permanent nominal rigidities, and no departure from rational expectations, there is a long-run inflation-unemployment tradeoff. …