Understanding Euro Area Inflation Dynamics : Why So Low for So Long? /

Despite closing output gaps and tightening labor markets, inflation has remained low in the euro area. Based on an augmented Phillips Curve framework, we find that this phenomenon-sometimes attributed to low global inflation-has been primarily caused by a remarkable persistence of inflation, keeping...

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Bibliografski detalji
Glavni autor: Abdih, Yasser
Daljnji autori: Lin, Li, Paret, Anne-Charlotte
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2018.
Serija:IMF Working Papers; Working Paper ; No. 2018/188
Online pristup:Full text available on IMF
Opis
Sažetak:Despite closing output gaps and tightening labor markets, inflation has remained low in the euro area. Based on an augmented Phillips Curve framework, we find that this phenomenon-sometimes attributed to low global inflation-has been primarily caused by a remarkable persistence of inflation, keeping it low despite the reduction in slack. This feature is shown to be specific to the euro area (in comparison with the United States). Monetary policy needs to stay accommodative to help guide inflation back to target.
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Opis:1 online resource (25 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students