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This paper replicates the main analysis of Svensson (2015) with some expansion to the original analysis, mainly for the United States. Overall, the replication exercise successfully confirms the conclusions of Svensson (2015). In both Sweden and the United States, empirical evidence sup- ports...
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to unemployment over the last decade is a result of firmly anchored inflation expectations. …
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In this paper we test a new empirical relationship between wage and inflation. We introduce the concept of a cumulative wage gap, meaning the cumulative gap between the current wage and a maximum peak wage value in the past. In a crisis, people relate to their peak gains in the immediate past....
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in ation and the role of in ation expectations. In relation to the recent weakness of in ation, we discuss the role of … evidence supports the view that the absorption of slack and a firm anchoring of in ation expectations remain central to …
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