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UK Philips Curves and Monetary Policy Author info | Abstract | Publisher info | Download info | Related research | Statistics A Haldane
D Quah
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This paper documents some stylized facts on evolving UK Phillips curves, and shows how these differ from their US versions. We interpret UK Phillips curve dynamics in a positive theory of monetary policy – how policy-maker attitudes on the Phillips curve have evolved since the 1950s – rather than, more traditionally, as interaction between exogenous demand and supply disturbances. Combining this framework with reasoned conjectures on how policy-makers’ beliefs have changed helps explain some features of the evolving UK Phillips curve. We suggest that correlations suggesting an extreme favorable unemployment-inflation tradeoff might indicate not something to be exploited but instead only policy-makers’ correctly acknowledging that no tradeoff exists.
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
0444.
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Date of creation: Feb 2000Date of revision:
Handle: RePEc:cep:cepdps:0444Contact details of provider: Web page: http://cep.lse.ac.uk/pubs/
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Keywords: Beliefs inflation natural rate stability Other versions of this item:
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Richard Mash, 2000.
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"Evaluating the Persistence and Structuralist Theories of Unemployment from a Nonlinear Perspective ,"
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JUNCAL CUñNADO & FERNANDO PÉREZ DE GRACIA, 2003.
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Nelson, Edward, 2001.
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3047, C.E.P.R. Discussion Papers.
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Bank of England working papers
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Anders Warne & Anders Vredin, 2006.
"Unemployment and Inflation Regimes ,"
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Berkeley Electronic Press, vol. 10(2), pages 1280-1280.
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Other versions: Juncal Cuñado Eizaguirre & Fernando Pérez de Gracía Hidalgo, .
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