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• W2016202633 abstract "This paper studies the dynamic behavior of inflation and unemployment in Spain during the period 1964–1997. In particular, we analyze the implications of high persistence in both unemployment and inflation dynamics for inference regarding the size of Phillips trade-offs and sacrifice ratios in the Spanish economy, in response to a demand shock. To do so we use a Stuctural VAR approach with several identification outlines which give rise to alternative interpretations of the joint unemployment-inflation dynamics. When using a bivariate VAR we cannot reject the existence of a permanent output loss of one-half of one percentage point for each percentage point of permanent disinflation. However, when the VAR is augmented with a third variable, in order to disentangle monetary from non-monetary shocks within the demand class, the evidence favours a lower and marginally permanent trade-off with an output loss of about one-fourth of one percentage point." @default.
• W2016202633 created "2016-06-24" @default.
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• W2016202633 date "2000-12-01" @default.
• W2016202633 modified "2023-10-16" @default.
• W2016202633 title "Unemployment and inflation persistence in Spain: Are there Phillips trade-offs?" @default.
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• W2016202633 doi "https://doi.org/10.1007/pl00013582" @default.
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