Karanassou, Marika (contributor); Sala, Hector (contributor) - 2006
) a macroeconomic magnitude, e.g.
unemployment rate, inflation rate, output, marginal costs, etc.
Considering a stochastic …
1960 for the US.
9
The original formulation is given by
π
t
= c−bu
t
+ ε
t
, (8)
where π
t
is the inflation rate, u
t
is … the degree of capacity utilization and its non accelerating
inflation rate (NAIRCU).
Observe that in (20) expectations are …