This paper studies the forecasting ability of various Phillips curve specifications in a pseudo out-of-sample exercise for Swedish inflation over the period 1980-2014. Three measures of inflation are considered –– headline inflation, underlying inflation, GDP deflator inflation, in addition...

This study considers Bayesian variable selection in the Phillips curve context by using the Bernoulli approach of Korobilis (2013a). The Bernoulli model, however, is unable to account for model change over time, which is important if the set of relevant predictors changes over time. To tackle...

This thesis consists of three chapters in empirical macroeconomics. In particular it treats important issues related to monetary policy. The focus is on inflation dynamics and all three studies involve some approach of forecasting. The first chapter deals with estimation problems of a monetary...