Definition & Reality in the General Theory of Political Economy

by Thomas Cool

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[-1]) ] = u

In this specification, the CWIRU can be ERU[REH], and ERU[REH] can be CWIRU. Namely, when

* =

[-1], or when expectational equilibrium is associated with constant wage inflation. Some ERU[REH] however can exist with nonconstant inflation that is not CWIRU. Since equilibrium wage inflation