Explaining apparent changes in the Phillips curve: the Great Moderation and monetary policy

Observations that the Phillips curve may be deviating from historical norms are important to policymakers because deviations would imply that more or less output has to be sacrificed to achieve a permanent reduction in long-term inflation. But we argue that recent economic shocks and a shift in the Fed’s response to inflation may be leading economists to misestimate the curve.

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Year of publication:	2008
Authors:	Carlstrom, Charles T. ; Fuerst, Timothy S.
Published in:	Economic Commentary. - Federal Reserve Bank of Cleveland. - 2008, Feb, 1
Publisher:	Federal Reserve Bank of Cleveland
Subject:	Phillips curve \| Monetary policy \| Inflation (Finance)

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Source:	RePEc - Research Papers in Economics

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