Kocherlakota, Narayana Rao - National Bureau of Economic Research - 2024
This paper derives the curvature properties of the short-run Phillips curve in a class of canonical models of price …-setting frictions. Contrary to conventional thinking, the Phillips curve is asymptotically horizontal for high levels of economic … the relevant substitution effects may lead to misleading conclusions about the curvature of the Phillips curve, and to …