Policy trade off between inflation and unemployment
28 Jan 2020 via fiscal, monetary, trade or exchange rate policies, the tradeoff between the inflation rate and the unemployment rate is extremely important. (1994) further explains that “the trade-off between the variability of inflation and that of output exists because of the slow adjustment of prices; monetary policy Keywords: Endogenous monetary policy; Stability of the Phillips curve a trade- off between inflation and unemployment even in the short run. The analysis.