Naslov
Can there be a 'golden triangle' of internal equilibrium?

Autori
Škare, Marinko

Izvornik
Journal of policy modeling (0161-8938) 32 (2010), 4; 562-573

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
growth; inflation; Golden triangle rule; unemployment; internal equilibrium

Sažetak
The necessity of maintaining a balance between growth, employment and prices has always been in focus of economic policy debate. This piece of research is our modest contribution in the same direction. We explore the possibility of a simultaneous equilibrium of the mentioned three targets of national economic policy. Our empirical analysis show that a triangular equilibrium (what we call ‘golden triangle’) exists and that the governments can follow a policy of close monitoring the behaviour of the three variables and support the ‘optimum’ rate through an active intervention. We have looked for the quantitative relations that exist between the key economic variables and economic policy goals. It is our contention that a macroeconomic policy mechanism based on the golden triangle rule can help the governments to promote a long-term equilibrium growth and avoid possible close encounters with business cycles.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA