Key points are not available for this paper at this time.
Here Frt is the public's anticipated rate of commodity price inflation, wt is the wage rate at time t, Ut is the unemployment rate, andf(Ut, * * * ) is the shortrun Phillips curve with Af/d U < O and with the sequence of dots representmg a list of other variables; st is an unobservable random variable. In order to implement (1) empirically, an observable proxy for 7rt must be obtained. Almost always this requirement is filled by using the Fisher-Cagan2 equation
Thomas J. Sargent (Sun,) studied this question.