Jiménez, Félix - Departamento de Economía, Pontificia Universidad … - 2010
Monetary Policy Reaction Function. This chapter studies the inverse relationship between the rate of inflation and the rate of … unemployment well-known as the Phillips Curve. Then, it analyses the short-term equilibrium between inflation, output and … unemployment; and by including the Monetary Policy Rule (or Taylor rule) into the IS curve, the chapter describes the meaning of …