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' PC (relating the level of the inflation rate, not the change in this rate, to the rate of unemployment); and the …
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relationship between inflation and unemployment is nonlinear. Using aggregate data we are unable to reject a linear relationship … low compared to when it is high. Nevertheless the simple nonlinear Phillips curves used here suggest a core CPI inflation …
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In this paper we introduce a small Keynesian model of economic growth, which is centered around two advanced types of Phillips curves, one for money wages and one for prices, both being augmented by perfect myopic foresight and supplemented by a measure of the medium-term inflationary climate...
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