We study the time path of inflation and unemployment using the Blanchard treatment of the relationship between the two … the results. The economic dynamics of inflation and unemployment shows that they fluctuate around their intertemporal … equilibria, inflation around the growth rate of nominal money supply, respectively, and unemployment around the natural rate of …

definitions, we discuss a multiple regime dynamic model generating an endogenous unemployment-price adjustment mechanism. Two … value of unemployment rate is reached. Depending on parameter values, we show that this model is capable of producing a rich …