Was there a textbook-like Phillips curve in post-WWII Italy? We estimate a consensus model of the relationship between inflation and the level of economic activity over 1949-1998, finding no evidence of a significant and positive feedback from output to prices. We also estimate similar models...

The theme of this paper is whether there was a textbook-like Phillips curve in post- WWII Italy. We estimate a standard model of the relationship between inflation and the level of real economic activity over the 1949 to 1998 period and find no evidence of a significant and positive feedback...

We examine Italian inflation rates and the Phillips curve with a very long-run perspective, one that covers the entire existence of the Italian lira from political unification (1861) to Italy’s entry in the European Monetary Union (end of 1998). We first study the volatility, persistence and...