Phillips Curve Analysis: Some Experiences from Pakistan′s Economy

Abstract

Some structural evidence indicating a substantial degree of inertia in commodity prices in Pakistan within the context of a complete rational expectations macroeconomic model is provided. The evidence also supports the existence of a short‐run Phillips curve for Pakistan for the period 1972(1) to 1981(4). What is more interesting is the existence of a long‐run “trade‐off” between excess demand for labour and inflation despite the fact that inflationary expectations are assumed to be rational.

Citation

Aynul Hasan, M. (1990), "Phillips Curve Analysis: Some Experiences from Pakistan′s Economy", Journal of Economic Studies, Vol. 17 No. 1. https://doi.org/10.1108/01443589010144475