unemployment rate has been about 0.8 percentage points higher than if average inflation had been on target. This is a large … unemployment cost of undershooting the inflation target …If inflation expectations become firmly anchored at the inflation target even when average inflation deviates from the …

for the unemployment-inflation tradeoff and for the conduct of monetary policy.<br><br>We proceed in two steps. We first … setting by firms. We derive the relation between inflation and unemployment and discuss how it is influenced by the presence … of labor market frictions and real wage rigidities. We show the nature of the tradeoff between inflation and unemployment …

This paper asks how well Okun's Law fits short-run unemployment movements in the United States since 1948 and in twenty … the unemployment rate - varies substantially across countries. This variation is partly explained by idiosyncratic …

unemployment-inflation tradeoff since 1995 …

inflation, strong real wage growth, and low rate of unemployment in the U.S. economy during the late 1990s. Many of these … univariate trends in the unemployment rate and in the rate of productivity growth, these coefficients are stable. This suggests … explanations of movements of wages, prices and unemployment over the 1990s, and indeed over the past forty years, must focus on …

inflation expectations. We develop this measure using assumptions common in economic analysis of open economies. Using quarterly …

-run trade-off between unemployment and inflation is in terms of price levels; Model 2 is one in which the trade-off is in terms …

unemployment on inflation, for given expected inflation, decreased until the early 1990s, but has remained roughly stable since …-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 …

-market slack is captured by the level of short-term unemployment. This equation explains inflation behavior since 2000, including … the failure of high total unemployment since 2008 to reduce inflation greatly. The fit of our equation is especially good … Phillips curve in which core inflation depends on short-term unemployment and on expected inflation as measured by the Survey …