Does the NAIRU Have the Right Dynamics?

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چکیده

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Does the NAlRU Have the Right Dynamics?

The “NAIRU” view of the reiationsbi~ be tween inflation and the unemployment r&e is that there is a value of the unemployment rate (the NAIRU) below wbicb the price level forever accelerates and above which the price level foxever deceiemtes.” This view imposes two important restrictions 01t the dynamics of the price process. This can be seen by examining a simple version of the NAlRU equation:

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ژورنال

عنوان ژورنال: American Economic Review

سال: 1999

ISSN: 0002-8282

DOI: 10.1257/aer.89.2.58