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Change of regime and Phillips curve stability: The case of Spain, 1964-2002

  • Bajo-Rubio, Oscar
  • Diaz-Roldan, Carmen
  • Esteve, Vicente

Traditional Phillips curves relating inflation to a measure of the level of activity, and augmented to include past inflation (assumed to proxy expected inflation), have been thought to be highly unstable over time. In this paper we try to investigate, using recent econometric developments, whether such a statement can be supported over a long time period. In the empirical application, we analyze the case of Spain along the period 1964 to 2002.

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Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 29 (2007)
Issue (Month): 3 ()
Pages: 453-462

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Handle: RePEc:eee:jpolmo:v:29:y:2007:i:3:p:453-462
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