Showing 1 - 10 of 18
We study inflation dynamics in Colombia using a bottom-up Phillips curve approach. Thisallows us to capture the different drivers of individual inflation components. We find that thePhillips curve is relatively flat in Colombia but steeper than recent estimates for the U.S.Supply side shocks...
Persistent link: https://www.econbiz.de/10012913928
Upward sloping yield curves are hard to reconcile with the positive association between income and inflation (the Phillips curve) in consumption-based asset pricing models. Using US and UK data, this paper shows inflation is negatively correlated with long-run income growth but positively...
Persistent link: https://www.econbiz.de/10012906878
Empirical tests of the New Keynesian Phillips Curve have provided results often inconsistent with microeconomic evidence. To overcome the pitfalls of standard estimations on aggregate data, a Full Information Partial Equilibrium approach is developed to exploit sectoral level data. A model...
Persistent link: https://www.econbiz.de/10012907944
Despite closing output gaps and tightening labor markets, inflation has remained low inthe euro area. Based on an augmented Phillips Curve framework, we find that thisphenomenon-sometimes attributed to low global inflation-has been primarily causedby a remarkable persistence of inflation,...
Persistent link: https://www.econbiz.de/10012910359
A distinctive feature of market-provided services is that some of them have close substitutes at home. Households may therefore switch between consuming home and market services in response to changes in the real wage - the opportunity cost of working at home - and changes in the price of market...
Persistent link: https://www.econbiz.de/10013098601
Inflation persistence is sometimes defined as the tendency for price shocks to push the inflation rate away from its steady state - including an inflation target - for a prolonged period. Persistence is important because it affects the output costs of lowering inflation back to the target, often...
Persistent link: https://www.econbiz.de/10013054691
We explore two issues triggered by the crisis. First, in most advanced countries, output remains far below the pre-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a breakdown of the relation between inflation and...
Persistent link: https://www.econbiz.de/10013002151
This paper examines the recent behavior of core inflation in the United States. We specify a simple Phillips curve based on the assumptions that inflation expectations are fully anchored at the Federal Reserve's target, and that labor-market slack is captured by the level of shortterm...
Persistent link: https://www.econbiz.de/10013025502
Inflation rates rose sharply in the Philippines during 2018. Understanding the demand and supply sources of inflation pressures is key to monetary policy response. Qualitatively, indicators have pointed to evidence of inflation pressures from both sides in 2018, with the supply factors, by and...
Persistent link: https://www.econbiz.de/10012864114
This paper presents a multivariate (MV) methodology for obtaining measures of excess demand that can facilitate discussion of monetary policy issues and improve policy decisions. Using data for the Czech Republic, a growing economy undergoing major structural change, it shows how the use of more...
Persistent link: https://www.econbiz.de/10012783217