A Nonlinear Inflation Growth Model

Abstract

In the short run, the fall in aggregate demand leads to falling out­put and price level and rising unemployment. In this sense, it is important to use the Phillips curve, i.e., the curve that shows the short-run relationship between inflation and unemployment. This paper creates a relatively sim­ple chaotic inflation rate growth model. Also, this paper examines the infla­tion rate growth stability in the period 2000-2021 in France, and confirms the existence of the convergent fluctuations of the inflation rate in France in the observed period.