Home » Flattening of the Phillips Curve: Implications for Monetary Policy by Dora M. Iakova
Flattening of the Phillips Curve: Implications for Monetary Policy Dora M. Iakova

Flattening of the Phillips Curve: Implications for Monetary Policy

Dora M. Iakova

Published April 1st 2007
ISBN : 9786613824462
ebook
21 pages
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 About the Book 

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 usingMoreOver 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.