[position in research by date]
[position in research by subject]
"Estimated Inflation Costs Had European Unemployment Been
the 1980s by Macro Policies,"
Journal of Macroeconomics, Winter 1999, 1-28.
pdf file (1,193 KB).
This paper uses a multicountry econometric model
to estimate what the inflation costs would have been had
German monetary policy reduced
European unemployment in the 1982:1-1990:4 period.
A "non-NAIRU" framework is proposed for thinking about these costs.
The results in this paper suggest that the German monetary
authorities may have followed too restrictive a monetary policy in the
This paper refers to further results in
1997#2 regarding the estimation and testing of
the price and wage equations in the MC1 model.
The results in this paper can be duplicated on this site. Chapter 2
of The MC1 Model Workbook explains how to do
this--Chapter 2, MC1 Workbook.