The Great Recession and the Inflation Puzzle /

Notwithstanding persistently-high unemployment following the Great Recession, inflation in the United States has been remarkably stable. We find that a traditional Phillips curve describes the behavior of inflation reasonably well since the 1960s. Using a non-linear Kalman filter that allows for tim...

Ausführliche Beschreibung

Bibliographische Detailangaben
1. Verfasser: Matheson, Troy
Weitere Verfasser: Stavrev, Emil
Format: Zeitschrift
Sprache:English
Veröffentlicht: Washington, D.C. : International Monetary Fund, 2013.
Schriftenreihe:IMF Working Papers; Working Paper ; No. 2013/124
Online Zugang:Full text available on IMF
Beschreibung
Zusammenfassung:Notwithstanding persistently-high unemployment following the Great Recession, inflation in the United States has been remarkably stable. We find that a traditional Phillips curve describes the behavior of inflation reasonably well since the 1960s. Using a non-linear Kalman filter that allows for time-varying parameters, we find that three factors have contributed to the observed stability of inflation: inflation expectations have become better anchored and to a lower level; the slope of the Phillips curve has flattened; and the importance of import-price inflation has increased.
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Beschreibung:1 online resource (12 pages)
Format:Mode of access: Internet
ISSN:1018-5941
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