The Phillips Curve at the ECB

ECB
By September 5, 2019 12:06

The Phillips Curve at the ECB

  • The structural Phillips Curve is a useful framework
  • Slack in the economy, inflation expectations and markups are key determinants of inflation
  • Using cross-country variation or external instruments are promising routes to identify the Phillips Curve slope
  • Reduced-form empirical relation between slack and inflation provides a helpful contribution to the suite of forecasting models that we use at the ECB
ECB
By September 5, 2019 12:06

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