TY  - JOUR
AU  - Mankiw,N. Gregory
TI  - The Inexorable and Mysterious Tradeoff Between Inflation and Unemployment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7884
PY  - 2000
Y2  - September 2000
UR  - http://www.nber.org/papers/w7884
L1  - http://www.nber.org/papers/w7884.pdf
N1  - Author contact info:
N. Gregory Mankiw
Department of Economics
Littauer 223
Harvard University
Cambridge, MA  02138
Tel: 617/495-4301
Fax: 617/495-7730
E-Mail: ngmankiw@fas.harvard.edu
AB  - This paper discusses the short-run tradeoff between inflation and unemployment.  Although this tradeoff remains a necessary building block of business cycle theory, economists have yet to provide a completely satisfactory explanation for it.  According to the consensus view among central bankers and monetary economists, a contractionary monetary shock raises unemployment, at least temporarily, and leads to a delayed and gradual fall in inflation.  Standard dynamic models of price adjustment, however, cannot explain this pattern of responses.  Reconciling the consensus view about the effects of monetary policy with models of price adjustment remains an outstanding puzzle for business cycle theorists.
ER  -