Svensson, Lars E. O. - In: American Economic Journal: Macroeconomics 7 (2015) 1, pp. 258-96
If inflation expectations become firmly anchored at the inflation target even when average inflation deviates from the target, the long-run Phillips curve becomes nonvertical. During 1997-2011, average inflation expectations in Sweden have been close to the inflation target of 2 percent, whereas...