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- W2055997999 abstract "If inflation expectations become firmly anchored at the inflation target even when average inflation deviates from the target, the long-run Phillips curve becomes nonvertical. During 1997–2011, average inflation expectations in Sweden have been close to the inflation target of 2 percent, whereas average inflation has fallen short of the target by 0.6 percentage points. The estimates reported suggest that the slope of the long-run Phillips curve is about 0.75. Then the average unemployment rate has been about 0.8 percentage points higher than if average inflation had been on target. This is a large unemployment cost of undershooting the inflation target. (JEL D84, E24, E31, E52, E58)" @default.
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- W2055997999 date "2015-01-01" @default.
- W2055997999 modified "2023-10-13" @default.
- W2055997999 title "The Possible Unemployment Cost of Average Inflation below a Credible Target" @default.
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- W2055997999 doi "https://doi.org/10.1257/mac.20130176" @default.
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