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sensitivity of inflation to unemployment rate changes. Improvement in fit from just including the online share is tiny—so far …. Other results indicate that market-based price indexes are more sensitive to unemployment than measures such as core PCE … reducing the bargaining power of labor, could lower the natural rate of unemployment. Model performance and fits are improved …
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' PC (relating the level of the inflation rate, not the change in this rate, to the rate of unemployment); and the …
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This paper first outlines the key stylized facts about changes in inflation dynamics in recent years: 1) inflation persistence has declined, 2) the Phillips curve has flattened, and 3) inflation has become less responsive to other shocks. These changes in inflation dynamics are interpreted as...
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Under inflation targeting inflation exhibits negative serial correlation in the United Kingdom, and little or no persistence in Canada, Sweden and New Zealand, and estimates of the indexation parameter in hybrid New Keynesian Phillips curves are either equal to zero, or very low, in all...
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