Albuquerque, Bruno; Baumann, Ursel - Task Force on Low Inflation (LIFT) - 2017
inflation, and either the closing of this gap or non-linearities in the Phillips curve could lead to a sudden pick-up in … Phillips curve model that takes into account inflation persistence, inflation expectations, supply shocks and labour market … slope. In fact, we find that Phillips curve models with time-varying slope coefficients are able to outperform significantly …