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- W1569409204 abstract "Assuming a neoclassical money and growth environment where all markets are continuously in equilibrium, a model is presented that reproduces involuntary unemployment and inflation. The neoclassical, full employment, labor market is reformulated as a contract market in which unions negotiate a nominal wage increase, while firms determine the rate of hiring. Time paths of the price level and employment ratio are generated, taking into account the effects of capital accumulation on productivity. Under the particular inflationary expectations hypothesis of the model, an expansionary monetary policy causes transitional stagflation. An incomes policy for moderating unemployment is considered." @default.
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- W1569409204 date "1980-01-01" @default.
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- W1569409204 title "A Neoclassical Theory of Stagflation" @default.
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- W1569409204 doi "https://doi.org/10.2307/3439744" @default.
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