Hysteresis, the Phillips Curve and the Costs of Monetary Union

David Philip Cobham, S Williams

    Research output: Contribution to journalArticlepeer-review

    1 Citation (Scopus)

    Abstract

    If actual unemployment affects the non-accelerating inflation rate of unemployment (NAIRU) through a hysteresis effect, the disinflation involved in reducing a country's inflation rate to that of its future partners in a monetary union could produce a long term cost to monetary union in the form of a lasting rise in the NAIRU. This note sets out a framework for analysing the likelihood of such an eventuality.

    Original languageEnglish
    Pages (from-to)477-480
    Number of pages4
    JournalApplied Economics Letters
    Volume5
    Issue number8
    Publication statusPublished - Aug 1998

    Keywords

    • NATURAL RATE
    • UNEMPLOYMENT

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