The modelling of expectations and its degree of backward looking behaviour are issues of main concern in the inflation dynamics research agenda. One approach in the literature is to use expectations from surveys as an approximation to actual expectations. We estimate the Phillips curve allowing...

This paper shows that a simple form of nonlinearity in the Phillips curve can explain why, following the Great Recession, inflation did not decrease as much as predicted by linear Phillips curves, a phenomenon known as the missing disinflation. We estimate a piecewise-linear specification and...