CFDP 1129

Estimated Inflation Costs Had European Unemployment Been Reduced in the 1980s by Macro Prices


Publication Date: August 1996

Pages: 20


This paper uses a multicountry econometric model to estimate what the inflation costs would have been if macropolicies had reduced European unemployment in the 1982:1-1990:4 period. A “non-NAIRU” framework is proposed for thinking about these costs.