01656cas a2200265 a 4500 AALejournalIMF018699 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484372562 1018-5941 BD-DhAAL BD-DhAAL Abdih, Yasser. Understanding Euro Area Inflation Dynamics : Why So Low for So Long? / Yasser Abdih, Li Lin, Anne-Charlotte Paret. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (25 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Lin, Li. Paret, Anne-Charlotte. IMF Working Papers; Working Paper ; No. 2018/188 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/188/001.2018.issue-188-en.xml IMF e-Library