unemployment on inflation,for given expected inflation, decreased until the early 1990s, but has remained roughly stable since then …-recession trend, suggesting hysteresis. Second, while inflation has decreased, it has decreased less than anticipated, suggesting a … breakdown of the relation between inflation and activity. To examine the first, we look at 122 recessions over the past 50 years …

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, keeping it low despite the reduction in slack. Thisfeature is shown to be …

outcomes and fragility and find the combination of reduction of inflation and lower unemployment to be the one that delivers …, results from our analysis broadly confirm the above “winning” combination, with low inflation as a primary desired outcome and … low unemployment rate as a secondary one. We also carry out a series of robustness tests, which confirm our findings …

Inflation and unemployment rate were largely disconnected between 2000 and 2019 in advanced economies. We decompose … inflation and unemployment rate. The approach has potential to help understand forces shaping price pressures during the … core inflation into two parts based on the cyclical sensitivity of CPI components and document several salient facts: (i …

-run Phillips curve between inflation and unemployment and a trade-off between price distortions and output hysteresis that change …Standard New Keynesian (NK) models feature an optimal inflation target well below two percent, limited welfare losses … the welfare-maximizing inflation level. For a plausible set of parameters, the optimal inflation target is in excess of …

-looking specifications, especially when targeting core components of GDP and inflation, and combine the best parts of efficiency and …