Flattening of the Phillips Curve
Author | : Dora M. Iakova |
Publisher | : International Monetary Fund |
Total Pages | : 26 |
Release | : 2007-04 |
ISBN-10 | : UCSD:31822034594101 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Flattening of the Phillips Curve written by Dora M. Iakova and published by International Monetary Fund. This book was released on 2007-04 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past decade, inflation has become less responsive to domestic demand pressures in many industrial countries. This development has been attributed, in part, to globalization forces. A small macroeconomic model, estimated on UK data using Bayesian estimation, is used to analyze the monetary policy implications of this structural change. The focus is on the implications of a globalization-related flattening of the Phillips curve for the trade-off between inflation and output gap variability and for the efficient monetary policy response rule.