A statistically significant relationship between the unemployment gap and inflation can be found for a clear majority … slack on inflation can often be dominated by other shocks, including imported inflation. The current Secretariat Phillips … curve specification assumes inflation expectations are anchored at the central bank’s target, although some experimentation …

Inflation has become much less sensitive to movements in unemployment in recent decades. A common explanation for this … change is that inflation expectations have become better anchored as a consequence of credible inflation targeting by central … traditional ‘backward-looking’ Phillips curve, where current inflation is partly explained by an autoregressive distributed lag …

) modified the original curve in linking the unemployment rate to the inflation rate. This essay analyzes the links of the modern … discussion to the debates over time highlighting similarities, differences, and ways ahead regarding the formation of inflation … addressed as the anchoring of inflation expectations as a precondition for keeping inflation targets and the question whose …