We provide evidence on the fit of the New Phillips Curve (NPC) for the Euro area over the period 1970-1998, and use it as a tool to compare the characteristics of European inflation dynamics with those observed in the U.S. We also analyse the factors underlying inflation inertia by examining the...

The purpose of the present paper is twofold. First, we characterize de Fed's systematic response to technology shocks and its implications for us output, hours and inflation. Second we evaluate the extent to which that responses can be accounted for by a simple monetary policy rule in the...