An approach to decomposing and interpreting the inflation process is proposed. It suggests that the low U.S. inflation …

inflation is found to be quite sensitive to the unemployment gap. An increase in cyclical unemployment by 1 percentage point … will reduce inflation by approximately 0.6 percentage points within a year. …

In this paper we study 2-state Markov switching VAR models of monthly unemployment and inflation for three countries …: Sweden, United Kingdom, and the United States. The primary purpose is to examine if periods of low inflation are associated … variance in unemployment. In the U.S. case we find that the variance of unemployment is lower in the low inflation regime than …

variable for Swedish inflation than the output gap. However, standard errors in the estimations are large and it is in fact … difficult to pin down a statistically significant relationship between either real marginal cost or the output gap and inflation. …

inflation-targeting regime 19932002 with the policies implied by certain simple instrument rules. Calibrated rules that are … describe monetary policy about equally well. A close reading of various policy documents, e.g., Inflation Reports, minutes from …

"Leaning against the wind" – a tighter monetary policy than necessary for stabilizing inflation around the inflation …

inflation and unemployment. Lately there have been several studies which claim that the slope of the Phillips curve is a …

Factor models of disaggregate inflation indices suggest that sectoral shocks generate the bulk of sectoral inflation … variance, but no persistence. Aggregate shocks, by contrast, are the root of sectoral inflation persistence, but have … particular, sectoral inflation series are subject to features such as measurement error, sales and item substitutions. In factor …