Watson, Mark W. - In: American Economic Review 104 (2014) 5, pp. 31-36
The rate of inflation fell far less over the period 2007-2013 than in the period 1979-1985 despite similar large … increases in the unemployment rate. This paper asks why. Possible explanations include a change in the persistence of inflation …, changes in NAIRU, and other shocks. A change in the persistence of inflation, with inflation more anchored in the period 2007 …