WASET
	%0 Journal Article
	%A Zdravka Aljinović and  Snježana Pivac and  Boško Šego
	%D 2009
	%J International Journal of Economics and Management Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 25, 2009
	%T An Expectation of the Rate of Inflation According to Inflation-Unemployment Interaction in Croatia
	%U https://publications.waset.org/pdf/9789
	%V 25
	%X According to the interaction of inflation and
unemployment, expectation of the rate of inflation in Croatia is
estimated. The interaction between inflation and unemployment is
shown by model based on three first-order differential i.e. difference
equations: Phillips relation, adaptive expectations equation and
monetary-policy equation. The resulting equation is second order
differential i.e. difference equation which describes the time path of
inflation. The data of the rate of inflation and the rate of
unemployment are used for parameters estimation. On the basis of
the estimated time paths, the stability and convergence analysis is
done for the rate of inflation.
	%P 95 - 99