This paper takes a new look at the long-run dynamics of inflation and unemployment in
response to permanent changes in the growth rate of the money supply. We examine the
Phillips curve from the perspective of what we call “frictional growth,” ie the interaction
between money growth and nominal frictions. After presenting a theoretical model of this
phenomenon, we construct an empirical model of the Spanish economy and, in this context,
we evaluate the long-run inflation-unemployment tradeoff for Spain and examine how recent …

This paper takes a new look at the long-run dynamics of in¿ ation and unemployment in
response to permanent changes in the growth rate of the money supply. We examine the
Phillips curve from the perspective of what we call" frictional growth", ie the interaction
between money growth and nominal frictions. After presenting theoretical models of this
phenomenon, we construct an empirical model of the Spanish economy and, in this context,
we evaluate the long-run in¿ ation-unemployment tradeo¿ for Spain and examine how …