Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 150: Is There a Long-Run Trade-Off between Inflation and Unemployment?

Bo Axell and Harald Lang
Additional contact information
Bo Axell: Research Institute of Industrial Economics (IFN)
Harald Lang: Research Institute of Industrial Economics (IFN)

Abstract: How are inflation and unemployment related in the long run? Are they negatively correlated, as in the so-called naive Phillips curve theories or uncorrelated, "as in the neo-liberals' view or are they positively correlated as Friedman suggested in his Nobel lecture? In this paper inflation is introduced into a general equilibrium search unemployment model. We show that it is possible to get either a negatively or a positively sloping long-run Phillips curve, all depending on the source of inflation.

Keywords: Unemployment; inflation; Phillips curve; general equilibrium

JEL-codes: D50; E31; J64

28 pages, December 1985

Full text files 

wp150.pdf PDF-file

Download statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:iuiwop:0150This page generated on 2024-09-13 22:15:47.