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Price Stability, Inflation and Central Banks
E/E/32. Models of relationship between inflation and unemployment
- WORDS:
- 2000
- DATE:
- 2006
- PRICE:
- 29.99 GBP
The paper examines the relationship between inflation and unemployment analysing Phillips curve and its adaptations to the changing economic environment known as the short-run Phillips curve (SRPC) and the long-run Phillips curve (LRPC). The Aggregate Supply-Aggregate Demand (AS-AD) model is discussed, factors determining the natural rate of unemployment are identified.
KEYWORDS: Inflation, unemployment, Phillips curve, Aggregate Supply-Aggregate Demand,
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