This paper surveys the research in the past decade on imperfect information models of aggregate supply and the Phillips …

economic activity. We estimate Phillips curve regressions based on alternative decompositions of output into global and … domestic components. For the domestic component of GDP we find a positive and significant Phillips curve slope. While the … output component driven by oil prices "flattens" the Phillips curve, the component driven by global demand shocks "steepens …

slack. This observation has led some to believe that the Phillips curve-a summary measure of aggregate supply-has flattened … odds with a decline in the Phillips curve slope, but fully consistent with a shift towards a more firm monetary policy …