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The short-run Phillips curve of the current spanish economy

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Baiges, Josep and Molinas, César and Sebastián Gascón, Miguel (1987) The short-run Phillips curve of the current spanish economy. [ Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales; nº 15, 1987, ISSN: 2255-5471 ]

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Official URL: http://eprints.ucm.es/21179/




Abstract

Some economists have advocated an expansionary demand policy to reduce unemployment in Spain. This means accepting a negatively sloped short-run Phillips curve that would allow the exploitation of the celebratred trade-off between inflation and unemployment.
This paper gives a qualitative characterization of the Spanish short-run Phillips curve. We argue that this curve is currently vertical and the apparent trade-off shown by the data is misleading, as it is caused by an increase in the equilibrium rate of unemployment. Consequently, the effects of an expansionary demand policy would mainly go into prices and the reduction of unemployment would be small.


Item Type:Working Paper or Technical Report
Uncontrolled Keywords:Phillips Curve, Unemployment, Curva de Phillip, Desempleo, Economía española.
Subjects:Social sciences > Economics > Labor
Social sciences > Economics > Economics
Series Name:Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales
Volume:1987
Number:15
ID Code:21179
Deposited On:13 May 2013 12:25
Last Modified:21 Apr 2015 08:15

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