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

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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Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2004/52.

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Length: 15 pages
Date of creation: 2004
Handle: RePEc:cea:doctra:e2004_52
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