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dc.contributor.authorBergholt, Drago
dc.contributor.authorFurlanetto, Francesco
dc.contributor.authorVaccaro-Grange, Etienne
dc.date.accessioned2023-02-15T06:50:42Z
dc.date.available2023-02-15T06:50:42Z
dc.date.issued2023
dc.identifier.isbn978-82-8379-261-4
dc.identifier.issn1502-8143
dc.identifier.urihttps://hdl.handle.net/11250/3050868
dc.description.abstractAn apparent disconnect has taken place between inflation and economic activity in the US over the last 25 years, with price inflation remaining remarkably stable in spite of large fluctuations in the output gap and other measures of economic slack. This observation has led some to believe that the Phillips curve–a summary measure of aggregate supply–has flattened. We argue that this view may be premature and put forward a few, simple arithmetics which give rise to testable implications for demand and supply curve slopes. Equipped with New Keynesian theory and estimated SVAR models, we decompose the unconditional variation in US macro data into the components driven by demand and supply disturbances, and confront the inflation disconnect with our simple arithmetics. This exercise reveals a relatively stable supply curve slope once shocks to supply have been properly accounted for. The demand curve, instead, has flattened substantially in recent decades. Our results are at odds with a decline in the Phillips curve slope, but fully consistent with a shift towards a more firm monetary policy commitment to inflation stability.en_US
dc.language.isoengen_US
dc.publisherNorges Banken_US
dc.relation.ispartofseriesWorking paper;2/2023
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 Internasjonal*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/deed.no*
dc.subjectinflationen_US
dc.subjectthe Phillips curveen_US
dc.subjectmonetary policyen_US
dc.subjectstructural VAR modelsen_US
dc.subjectJEL: C3en_US
dc.subjectJEL: E3en_US
dc.subjectJEL: E5en_US
dc.titleDid monetary policy kill the Phillips Curve? Some simple arithmeticsen_US
dc.typeWorking paperen_US
dc.description.versionpublishedVersionen_US
dc.subject.nsiVDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212en_US
dc.source.pagenumber35en_US


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Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal