. These include the distinction between the short and long-run trade-offs between inflation and unemployment, and the changing … level of the non-accelerating inflation rate of unemployment (NAIRU), particularly in the 1970s. We estimate Phillips curves … discussion of the changing role of the Phillips curve in the intellectual framework used to analyse inflation within the Reserve …

Ball and Sheridan (forthcoming) show that OECD countries with a history of high inflation before the 1990s have … subsequently experienced a larger degree of disinflation than countries with a history of low inflation. They label this process … ‘regression to the mean’, and argue that it explains why those OECD countries which adopted inflation targeting experienced larger …

prices are indexed to past inflation. These problems arise because of a type of misspecification and a lack of suitable …

include that a positive output gap would be less inflationary, but the cost of reducing inflation, once established, would …

bound (ZLB) on nominal interest rates has on the recommendations of such policy-makers. For a given target inflation rate … face in practice. We also examine the implications of the ZLB for policy-makers’ preferences as to their inflation target … neutral real interest rate is low. Such policy-makers should also set a higher target inflation rate if the economy’s natural …