The recently observed disconnect between inflation and economic activity can be explained by the interplay between the zero lower bound (ZLB) and the costs of external financing. In normal times, credit spreads and the nominal interest rate balance out; factor costs dominate firms' marginal...

We explain the role of the Phillips Curve at the ECB in the analysis of the economic outlook and the formulation of monetary policy. First, revisiting the structural Phillips Curve, we highlight the challenges in recovering structural parameters from reduced-form estimates and relate the...

Although the maintenance of price stability and the attainment of full employment are important macroeconomics goals in any economy, Nigeria still contends with problems of high inflation and unemployment. This study examines the Phillips curve hypothesis (inflation and unemployment trade-off)...