Boinet, Virginie; Martin, Christopher - In: Journal of Macroeconomics 32 (2010) 4, pp. 982-992
This paper argues that UK monetary policymakers did not respond to the inflation rate during most of the "Great Moderation" that ran from the early 1990s to the mid-2000s. We derive a generalisation of the New Keynesian Phillips curve in which inflation is a non-linear function of the output gap...