Eickmeier, Sandra; Moll, Katharina - Deutsche Bundesbank <Frankfurt, Main> / … - 2008
We examine the global dimension of inflation in 24 OECD countries between 1980 and 2007in a traditional Phillips curve framework. We decompose output gaps and changes in unitlabor costs into common (or global) and idiosyncratic components using a factor analysis andintroduce these components...