Is the Phillips Curve Alive and Well after All? Inflation Expectations and the Missing Disinflation

We evaluate explanations for the absence of disinflation during the Great Recession and find popular explanations to be insufficient. We propose a new explanation for this puzzle within the context of a standard Phillips curve. If firms'inflation expectations track those of households, then the...

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Bibliographic Details
Published in:	American economic journal. Macroeconomics 2015-01, Vol.7 (1), p.197-232
Main Authors:	Coibion, Olivier, Gorodnichenko, Yuriy
Format:	Article
Language:	English
Subjects:	2008-2013 Analytical forecasting Consumer surveys Disinflation Econometrics Economic expectations Economic inflation Economic models Economic statistics Economic theory Gasoline prices Global economy Great Recession Households Inflation Inflation rates International Macroeconomics Oil prices Papers from the October 2013 "Lessons from the Financial Crisis for Monetary Policy" Conference, Boston, Massachusetts Phillips curve Recessions Studies Unemployment
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