shocks this model generates the empirically observed slow (inertial) and prolonged (persistent) reaction of the inflation … shocks mostly through a change in the long-run or inflation updating component of their pricing policies. With staggered … pricing policies there is a time lag before this is reflected in aggregate inflation …

We study inflation dynamics in Colombia using a bottom-up Phillips curve approach. This allows us to capture the … different drivers of individual inflation components. We find that the Phillips curve is relatively flat in Colombia but steeper … dynamics are important for non-tradable goods. We show that besides allowing for a more detailed understanding of inflation …

non accelerating inflation rate of unemployment (NAIRU) improves on univariate methods as the Hodrick-Prescott (HP) filter …

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 unemployment. This equation explains inflation behavior since 2000, including …

that this may have contributed to more elastic aggregate supply in recent years, which is consistent with lower inflation …

Identifying determinants of the output-inflation tradeoff has long been a key issue in business cycle research. We … provide evidence that in countries with greater restrictions on capital mobility, a given reduction in the inflation rate is … Arrangements and Exchange Restrictions. Estimates of the output-inflation tradeoff are taken from previous studies, viz., Lucas …

relates average unemployment to average wage inflation; the curve is virtually vertical for high inflation rates but becomes … flatter as inflation declines. Second, macroeconomic volatility shifts the Phillips curve outward, implying that stabilization …, at low inflation. Fourth, when inflation decreases, volatility of unemployment increases whereas the volatility of …

test. In addition, this model is able to replicate the dynamic behavior of inflation and output found in the data …

advanced Europe, where wages are more closely related to inflation and inflation expectations in the short run, implying …