The short-run Phillips curve of the current spanish economy

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 characteri...

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Detalles Bibliográficos
Autores: Baiges, Josep, Molinas, César, Sebastián Gascón, Miguel
Tipo de recurso: informe técnico
Fecha de publicación:1987
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/63867
Acceso en línea:https://hdl.handle.net/20.500.14352/63867
Access Level:acceso abierto
Palabra clave:Phillips Curve
Unemployment
Curva de Phillip
Desempleo
Economía española
Trabajo
Teorías económicas
5307 Teoría Económica
Descripción
Sumario: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.