In this paper we analyse a new Phillips curve (NPC) model and demonstrate that (i) frictional growth, i.e. the …) frictional growth, i.e. the interplay of wage-staggering and money growth, generates a nonvertical NPC in the long-run, and (ii … lowering of the unemployment rate. Key Words: New Phillips curve, frictional growth, productivity growth, stagflating seventies …

chain reaction theory (CRT). We show that unemployment may not gravitate towards its natural rate due to frictional growth … theory (CRT). We show that unemployment may not gravitate towards its natural rate due to frictional growth, a phenomenon …: labour market dynamics, frictional growth, chain reaction theory, capital accumulation, impulse response function …

. In the context of the new Phillips curve (NPC), we show that frictional growth, i.e. the interplay between lags and … the natural rate of unemployment. In the context of the new Phillips curve (NPC), we show that frictional growth, i.e. the …, frictional growth, inflation-unemployment tradeoff,inflation dynamics, unemployment dy- namics, impulse response function. JEL …

-run. This is due to frictional growth, a phenomenon that captures the interplay of nominal staggering and permanent monetary …

-run. This is due to frictional growth, a phenomenon that captures the interplay of nominal staggering and permanent monetary …

-run. This is due to frictional growth, a phenomenon that captures the interplay of nominal staggering and permanent monetary …