Lahcen, Mohammed Ait; Baughman, Garth; Rabinovich, Stanislav - 2021 - This version: June 3, 2021
We argue that long-run inflation has nonlinear and state-dependent effects on unemployment, output, and welfare. Using … anticipated inflation and unemployment. Second, there is also a positive correlation between anticipated inflation and … unemployment volatility. Third, the long-run inflation-unemployment relationship is not only positive, but also stronger when …
