Notwithstanding persistently-high unemployment following the Great Recession, inflation in the United States has been … remarkably stable. We find that a traditional Phillips curve describes the behavior of inflation reasonably well since the 1960s … observed stability of inflation: inflation expectations have become better anchored and to a lower level; the slope of the …

impact on the economy—given better anchored inflation expectations and inflation being less responsive to variation in … Germany to confirm a weakening of monetary policy effectiveness over time with regards to unemployment and inflation. After …

are affected by the undershooting of the euro area inflation target. To shed light on this issue, we estimate an open …-economy, New Keynsian Phillips curve, in which we control for imported inflation. Regression results suggest that falling food and … energy prices have been the main disinflationary driver. But low core inflation in the euro area has also had a clear and …

the Phillips curve based on constant inflation expectations has returned for Sweden. Based on estimates of this model …-2011. This result is based on Svensson's unrealistic as well as unnecessary assumption of constant inflation expectations … anchored at the Riksbank's inflation target of 2 per cent. Data show, however, that the public's inflation expectations have …

income). This rate was also a NAIRU, the only rate consistent with stable inflation. It is then argued that the current … behaviour of many modern economies in which there is a credible policy to maintain a low and steady inflation rate is … noninflationary band of unemployment (a NAIBU) indicating a range of unemployment and income over with the inflation rate is stable …

This paper studies the role of monetary and open economy indicators in inflation targeting (IT) economies through the … are found to be relevant in predicting deviations of observed from target inflation. In contrast, for Mexico a real … predictors of deviations of actual from (i) expected (in the pre-IT period) and (ii) target inflation (in the post-IT span). …

Keynesian model we show that, if households have hyperbolic discounting, small positive rates of inflation can be optimal. In … our baseline calibration, the optimal rate of inflation is 2.1% and remains positive across a wide range of calibrations. …

that the SNB's shift to a more inflation-targeted policy should have increased real-wage flexibility and lowered the NAIRU …, the sacrifice ratio, and the level and persistence of inflation in Switzerland. Our results tend to confirm these …