Use a PC - MR diagram to show that the cumulative unemployment caused by disinflation is independent

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Use a PC - MR diagram to show that the cumulative unemployment caused by disinflation is independent of the degree of inflation aversion $(\beta)$ of the central bank. How does this finding change if.

(a) The Phillips curves are convex

(b) The Phillips curves are steeper (i.e. $\uparrow \alpha$ )?

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Macroeconomics Institutions Instability And The Financial System

ISBN: 9780199655793

1st Edition

Authors: Wendy Carlin, David Soskice

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Question Posted: Jun 10, 2024 02:09 AM

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Use a PC - MR diagram to show that the cumulative unemployment caused by disinflation is independent

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Macroeconomics Institutions Instability And The Financial System

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