... inflation in Europe, and 2B is some other factors bearing on the rate of inflation in America. The endogenous M. Carlberg, Monetary and Fiscal Strategies in the World Economy, 55DOI 10.1007/9 78- 3-642-10476-3_9, ... unit increase in money supply lowers the rate of unemployment by 1 percentage point. On the other hand, it raises the rate Monetary and Fiscal Interaction M. Carlberg, Monetary and Fiscal Strategies ... (6) M. Carlberg, Monetary and Fiscal Strategies in the World Economy, 47DOI 10.1007/9 78- 3-642-10476-3 _8, © Springer-Verlag Berlin Heidelberg 2010 23Chapter 3 Monetary and Fiscal Interaction...