This paper offers a reappraisal of the inflation-unemployment tradeoff, based on ?frictional growth,? describing the … expectations, there is a long-run inflation-unemployment tradeoff. Our empirical analysis suggests that this Phillips curve may be … reasonably flat. We show that the persistence of inflation and unemployment, in response to monetary policy shocks, is related to …

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 …

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 …

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 …

Abwärtsnominallohnrigidität selbst vom inflationären Umfeld abhängt und in Jahren mit niedriger Inflation sinkt. This paper examines the existence … nominal wage rigidity - under a constant degree of rigidity - are the higher, the lower the inflation rate is. For inflation … of the rigidity itself sinks during years of low inflation. …

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 …

This paper advances the hypothesis that the transition from there-is-little-central-banks-can-do-to-control-inflation … to inflation targeting occurred because central banks, especially the Federal Reserve, demonstrated that central banks … can control inflation rather than a consequence of marked improvement in the professions understanding of how monetary …

Inflation-targeting central banks have only imperfect knowledge about the effect of policy decisions on inflation. An … important source of uncertainty is the relationship between inflation and unemployment. This paper studies the optimal monetary … policy in the presence of uncertainty about the natural unemployment rate, the short-run inflation-unemployment tradeoff and …

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. …

detailed surveys of household inflation expectations for the United States and Sweden, we find that the data are generally … unsupportive of the near-rationality hypothesis. However, we document that household inflation expectations tend to settle around … discrete and largely fixed “focal points,†suggesting that both U.S. and Swedish households gauge inflation prospects in …