downward pressure on wage inflation has regained significant traction recently. This paper investigates whether the conclusion … that long-term unemployment is only weakly related to inflation depends on the assumption of linearity in the Phillips … curve. Specifically, once convexity is allowed for during the estimation process, long-term unemployment appears to have a …

using stochastic, time-varying parameter models. We document significant reductions in inflation persistence and … United States and the United Kingdom. We also show that the magnitude and the persistence of the response of inflation and …Using a model of deterministic structural change, we revisit several topics in inflation dynamics explored previously …

’ literature our monetary policy parameter estimates suggest that authorities tried to deliver a low and stable inflation from 1975 …

This paper reviews recent approaches to modelling the labour market, and assesses their implications for inflation … data and, so, too volatile inflation. Models with wage stickiness and right-to-manage bargaining, or with firm …

respond to movements in sectoral inflation rates. To do this we construct a Generalised Taylor model that takes specific … drive sectoral inflation rates as white noise processes, as in the UK data. We find that a policy rule that allows for … different responses to inflation in different sectors outperforms a rule which just targets aggregate CPI. However, the gain is …