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- W3125846281 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 non-vertical. 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.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org." @default.
- W3125846281 created "2021-02-01" @default.
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- W3125846281 date "2013-09-01" @default.
- W3125846281 modified "2023-09-24" @default.
- W3125846281 title "The Possible Unemployment Cost of Average Inflation Below a Credible Target" @default.
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