Journal article
Does the expectations trap render the Natural-Rate Model invalid in the disinflationary zone?
Cambridge Journal of Economics, Vol.21(1), pp.95-101
1997
Abstract
This paper questions the validity of the Natural-Rate Expectations Augmented Phillips curve (N-REAP) model by examining the concept of an ‘expectations trap’. If a Phillips curve becomes horizontal at higher levels of unemployment—as it did in the curves derived from a century of data by Phillips and Lipsey—then policy-induced increases in unemployment can reduce neither inflation nor inflationary expectations. The expectations trap, therefore, tends to render the policy conclusions derived from the N-REAP model either invalid or intolerably slow in the disinflation region.
Details
- Title
- Does the expectations trap render the Natural-Rate Model invalid in the disinflationary zone?
- Authors/Creators
- R. Leeson (Author/Creator)
- Publication Details
- Cambridge Journal of Economics, Vol.21(1), pp.95-101
- Publisher
- Oxford University Press
- Identifiers
- 991005543456207891
- Murdoch Affiliation
- Former School of Business
- Language
- English
- Resource Type
- Journal article
UN Sustainable Development Goals (SDGs)
This output has contributed to the advancement of the following goals:
Source: InCites
Metrics
31 Record Views
InCites Highlights
These are selected metrics from InCites Benchmarking & Analytics tool, related to this output
- Citation topics
- 6 Social Sciences
- 6.10 Economics
- 6.10.22 Monetary Policy
- Web Of Science research areas
- Economics
- ESI research areas
- Economics & Business