Document Type
Discussion Paper
Publication Date
4-1-1996
CFDP Number
1121
CFDP Pages
32
Abstract
The results in this paper, based on estimating and testing price equations for 30 countries, do not support the standard view of the long-run relationship between unemployment and inflation. They overwhelmingly reject the dynamics implied by the standard view. Wage equations are also estimated and tested. The paper also attempts to estimate the functional form of the relationship between measures of demand pressure and price and wage levels, but no strong conclusions emerge.
Recommended Citation
Fair, Ray C., "Testing the Standard View of the Long-Run Unemployment-Inflation Relationship" (1996). Cowles Foundation Discussion Papers. 1364.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1364