TY - BOOK ID - 84540810 TI - Disinflation in Spain : The Recent Experience PY - 1998 SN - 146237011X 1452715939 1281155780 1451898525 9786613777140 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Inflation KW - Labor KW - Production and Operations Management KW - Price Level KW - Deflation KW - Prices, Business Fluctuations, and Cycles: Forecasting and Simulation KW - Wages, Compensation, and Labor Costs: Public Policy KW - Macroeconomics: Production KW - Wages, Compensation, and Labor Costs: General KW - Macroeconomics KW - Labour KW - income economics KW - Disinflation KW - Wage bargaining KW - Output gap KW - Real wages KW - Prices KW - Production KW - Wages KW - Economic theory KW - Spain UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540810 AB - This paper investigates the causes of the recent disinflation in Spain. A standard Phillips curve model is used to disentangle the contributions of three possible shocks: an adverse demand shock that raises unemployment, a positive supply shock resulting from relative price adjustments or structural improvements in the labor market, and a credibility shock that lowers inflationary expectations. The main element underlying Spain’s recent disinflation appears to be a fall in inflation expectations, thanks to the country’s commitment to participate in Economic and Monetary Union from the start, and policy actions geared to that end. ER -