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Endogeneity of the labour market slack in reduced-form Phillips Curves (PCs) is usually addressed either by including proxies for omitted supply shocks, or by using instrumental variables. Using the Kiviet (2020) Kinky Least Squares estimator, we find evidence that supply-shock proxies should...
Persistent link: https://www.econbiz.de/10012705429
Potential links between inflation and unemployment in Canada have been examined. No consistent Phillips curve has been … linear links between inflation and unemployment could exist - before 1983 and after 1983.A linear and lagged relationship … between inflation, unemployment and labor force has been obtained for Canada. Similar relationships were reported previously …
Persistent link: https://www.econbiz.de/10012721183
recurrently. The escape route dynamics cause recurrent outcomes close to the Ramsey (commitment) inflation rate in a model with an …
Persistent link: https://www.econbiz.de/10013320318
changing nature of inflation dynamics. We estimate a series of VAR models for a set of six Asian emerging market economies, in … parts of inflation and output dynamics. The global shocks are procyclical with respect to the domestic components of …
Persistent link: https://www.econbiz.de/10011964249
This paper offers a reappraisal of the inflation-unemployment tradeoff, based on "frictional growth" describing the … able to work themselves out fully. In this context, monetary shocks have a gradual and delayed effect on inflation, and … permanent nominal rigidities, and no departure from rational expectations, there is a long-run inflation-unemployment tradeoff. …
Persistent link: https://www.econbiz.de/10011414902
-run inflation-unemployment tradeoff. …
Persistent link: https://www.econbiz.de/10011415107
reactiveness of inflation to the unemployment rate. In regard to a monetary union, the national unemployment multiplier in the …
Persistent link: https://www.econbiz.de/10010886968
This paper offers a reappraisal of the inflation-unemployment tradeoff, based on ?frictional growth,? describing the … expectations, there is a long-run inflation-unemployment tradeoff. Our empirical analysis suggests that this Phillips curve may be … reasonably flat. We show that the persistence of inflation and unemployment, in response to monetary policy shocks, is related to …
Persistent link: https://www.econbiz.de/10010955553
The evolution of the rate of price inflation, (t), and unemployment, u(t), in Japan has been modeled within the … that growing unemployment results in decreasing inflation. A linear and lagged generalized Phillips curve expressed as a … link between inflation, unemployment, and labor force has been also re-estimated and validated by new data. Labor force …
Persistent link: https://www.econbiz.de/10011260989
favour of the SIPC over the low-inflation period. Parameter estimates are sensitive to inflation measures and sample periods … the fact that inflation has become difficult to model since the introduction of inflation targeting. Over sample periods …
Persistent link: https://www.econbiz.de/10011265303