Can there be a 'golden triangle' of internal equilibrium?
The necessity of maintaining a balance between growth, employment and prices has always been in focus of economic policy debate. This piece of research is our modest contribution in the same direction. We explore the possibility of a simultaneous equilibrium of the mentioned three targets of national economic policy. Our empirical analysis show that a triangular equilibrium (what we call 'golden triangle') exists and that the governments can follow a policy of close monitoring the behaviour of the three variables and support the 'optimum' rate through an active intervention. We have looked for the quantitative relations that exist between the key economic variables and economic policy goals. It is our contention that a macroeconomic policy mechanism based on the golden triangle rule can help the governments to promote a long-term equilibrium growth and avoid possible close encounters with business cycles.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Prachowny, Martin F J, 1993. "Okun's Law: Theoretical Foundations and Revised Estimates," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 331-36, May.
- Jonas D. M. Fisher & Jeffrey R. Campbell, 2000.
"Aggregate Employment Fluctuations with Microeconomic Asymmetries,"
American Economic Review,
American Economic Association, vol. 90(5), pages 1323-1345, December.
- Jeffrey R. Campbell & Jonas D.M. Fisher, 1998. "Aggregate employment fluctuations with microeconomic asymmetries," Working Paper Series, Macroeconomic Issues WP-96-17, Federal Reserve Bank of Chicago.
- Campbell, J.R. & Fisher, J.D.M., 1996. "Aggreagate Employment Fluctuations with Microeconomic Asymmetries," RCER Working Papers 430, University of Rochester - Center for Economic Research (RCER).
- Jeffrey R. Campbell & Jonas D.M. Fisher, 1996. "Aggregate employment fluctuations with microeconomic asymmetries," Discussion Paper / Institute for Empirical Macroeconomics 112, Federal Reserve Bank of Minneapolis.
- Jeffrey R. Campbell & Jonas D.M. Fisher, 1996. "Aggregate Employment Fluctuations with Microeconomic Asymmetries," NBER Working Papers 5767, National Bureau of Economic Research, Inc.
- Campbell, John & Mankiw, Gregory, 1987.
"Are Output Fluctuations Transitory?,"
3122545, Harvard University Department of Economics.
- Nicholas Apergis & Anthony Rezitis, 2003. "An examination of Okun's law: evidence from regional areas in Greece," Applied Economics, Taylor & Francis Journals, vol. 35(10), pages 1147-1151.
- Kaufman, Roger T., 1988. "An international comparison of Okun's laws," Journal of Comparative Economics, Elsevier, vol. 12(2), pages 182-203, June.
- Charles Adams & David T. Coe, 1990.
"A Systems Approach to Estimating the Natural Rate of Unemployment and Potential Output for the United States,"
IMF Staff Papers,
Palgrave Macmillan, vol. 37(2), pages 232-293, June.
- Adams, Charles & Coe, David T., 1989. "A Systems Approach to Estimating the Natural Rate of Unemployment and Potential Output for the United States," MPRA Paper 8622, University Library of Munich, Germany.
- Lee, Jim, 2000. "The Robustness of Okun's Law: Evidence from OECD Countries," Journal of Macroeconomics, Elsevier, vol. 22(2), pages 331-356, April.
- Mark Setterfield & Kristen Leblond, 2003. "The phillips curve and US macroeconomic performance during the 1990s," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(4), pages 361-376.
- Paul A. Samuelson, 2008. "Thoughts about the Phillips curve," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 53.
When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:32:y::i:4:p:562-573. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.