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Phillips Curve In Romania In Conditions Of Near Rationality

Author

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  • NEAGOE, Daniel

    (“Costin C.Kiriţescu” National Institute for Economic Research, Romanian Academy, Bucharest, Romania)

Abstract

In a period of mainstream economic models failing to explain macroeconomic processes and individual economic behaviors, is necessary to reconsider dominant economic models by approaching with a higher accuracy the economic reality. The paper is proposing to contribute to Homo Oeconomicus updating process by analyzing one of its fundamental pillars: Phillips Curve, to observe potential latent influences that can be attributed to limited rationality or non-rationality and verify the precision of the model. The argument of the article takes form of the necessity of a deep evaluation of the concepts and paradigms of classical economics for adjustments with the purpose of a better representation of the reality and for an exact prediction of economic phenomena and their relations.

Suggested Citation

  • NEAGOE, Daniel, 2014. "Phillips Curve In Romania In Conditions Of Near Rationality," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 1(1), pages 291-301.
    • Handle: RePEc:vls:rojfme:v:1:y:2014:i:1:p:291-301
    as

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    References listed on IDEAS

    as
    1. A. W. Phillips, 1958. "The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861–1957," Economica, London School of Economics and Political Science, vol. 25(100), pages 283-299, November.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Sargent, Thomas J. & Wallace, Neil, 1976. "Rational expectations and the theory of economic policy," Journal of Monetary Economics, Elsevier, vol. 2(2), pages 169-183, April.
    4. Jeff Fuhrer & Jane Sneddon Little & Yolanda K. Kodrzycki & Giovanni P. Olivei (ed.), 2009. "Understanding Inflation and the Implications for Monetary Policy: A Phillips Curve Retrospective," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262013630, December.
    5. Edmund S. Phelps, 1968. "Money-Wage Dynamics and Labor-Market Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 76, pages 678-678.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Phillips Curve; Inflation; Unemployment; Romania; Near Rationality;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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