For the last two years inflation has been systematically falling across countries in the European Union and lately it exhibits rising deflationary pressures. Recent studies suggest that apart from global determinants influencing broad inflation measures, e.g. plummeting commodity prices, core...

Excessive disinflation and the flattening of the Phillips curve are recently popular phenomena in many advanced economies. In the environment of low inflation, the fading relationship between the price dynamics and the adjustments in the domestic real activity is vigorously investigated for...