Template-type: ReDIF-Paper 1.0
Author-Name: Josep Baiges
Author-Name: César Molinas
Author-Name: Miguel Sebastián
Author-Workplace-Name: Universidad Complutense de Madrid, Departamento de Fundamentos del 
	Análisis Económico II (Economía Cuantitativa)
Title: The short-run Phillips curve of the current spanish economy 
Abstract: Some economists have advocated an expansionary demand policy 
	to reduce unemployment in Spain. This means accepting a negatively sloped short-run Phillips 
	curve that would allow the exploitation of the celebratred trade-off between inflation and 
	unemployment. 
	This paper gives a qualitative characterization of the Spanish short-run Phillips curve. We 
	argue that this curve is currently vertical and the apparent trade-off shown by the data is 
	misleading, as it is caused by an increase in the equilibrium rate of unemployment. Consequently, 
	the effects of an expansionary demand policy would mainly go into prices and the reduction of 
	unemployment would be small.

Keywords: Phillips Curve, Unemployment, Curva de Phillip, Desempleo, Economía española.

Length: 28 pages 
Creation-Date: 1987 
Number: 87-15 
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doctra87-15.txt	 
File-URL: https://eprints.ucm.es/id/eprint/21179/1/8715.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doctra:87-15