Bergholt, Drago; Furlanetto, Francesco; Vaccaro-Grange, … - 2023 - First draft: November 2019
An apparent disconnect has taken place between inflation and economic activity in the US over the last 25 years, with … price inflation remaining remarkably stable in spite of large fluctuations in the output gap and other measures of economic … implications for demand and supply curve slopes. Equipped with New Keynesian theory and estimated SVAR models, we decompose the …