Huh, Hyeon-Seung; Lee, Hyun-Hoon - 2004
A strand of theoretical and empirical evidence in the literature suggests non-linearity in the output-inflation … relationship, viz. a non-linear Phillips curve. We develop a VAR model of output, inflation, and terms of trade augmented with … data. Output costs of reducing inflation vary, depending on the economy, size of inflation change, and whether policy …