Increasing Returns to Scale and the Long-Run Phillips Curve

Autoren

• Snower
• D.J.
• Vaona
• A.

Erscheinungsdatum

JEL Classification

Schlagworte

A growing body of empirical evidence shows that there exists a long-run positive tradeoff between inflation and real macroeconomic activity. Within a New Keynesian framewok, we examine how increasing returns generate a positive long-run relation between inflation and output.

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