Inflation rate variability and the Phillips curve

Avi Simhon*, Ziv Bar-Shira

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

This paper studies the relationship between inflation and unemployment by focusing on the effect of inflation rate uncertainty on real wages, employment and output. The effect of inflation on employment is shown to depend on the relationship between the mean rate of inflation and the variability of its forecasts. This can explain why the Phillips curve is negatively slopped in some periods and undetermined or positively slopped in others.

Original languageAmerican English
Pages (from-to)329-335
Number of pages7
JournalReview of International Economics
Volume9
Issue number2
DOIs
StatePublished - May 2001

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