Inflation Control with the Phillips Curve

Abstract

The possibility of knowing the two principal components of inflation — both structural and nonstructural, where each of them, in its turn, significantly depends on two variables -makes easier to adjust the anti-inflation policy in every case. In this paper is presented a formulation that shows the margin of maneuver for every anti-infl ation economic policy, and which is the least level the inflation may reach by applying anti-inflation non-structural economic policy.

Keywords:

Structural and non-structural inflation, current-account balance, unemployment rate, gross domestic product, budget balance, real and theoretical inflation, formulation on inflation, antiinflation policy