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Okun’s Law, Creation of Money and the Decomposition of the Rate of Unemployment

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Author Info
Stéphane Mussard () (GREDI, Université de Sherbrooke and GEREM, Université de Perpignan)
Bernard Philippe () (GEREM, Université de Perpignan)

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Abstract

In this paper, we show that the rate of unemployment in period t depends on GDP and inflation rate in period t-1. We then show that GDP is related to money creation, and subsequently that the rate of unemployment is a decreasing function of this creation.

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File URL: http://pages.usherbrooke.ca/gredi/wpapers/GREDI-0620.pdf
File Format: application/pdf
File Function: First version, 2006
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Publisher Info
Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 06-20.

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Length: 6 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:shr:wpaper:06-20

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Postal: Sherbrooke, Qu�bec, J1K 2R1
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Related research
Keywords: Creation of Money; Decomposition; GDP; Rate of Unemployment;

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Find related papers by JEL classification:
E20 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution

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  1. Mussard, Stephane & Peypoch, Nicolas, 2006. "On multi-decomposition of the aggregate Malmquist productivity index," Economics Letters, Elsevier, vol. 91(3), pages 436-443, June. [Downloadable!] (restricted)
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This page was last updated on 2009-11-20.

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