TY  - BOOK
AU  - Del Negro,Marco
AU  - Lenza,Michele
AU  - Primiceri,Giorgio E.
AU  - Tambalotti,Andrea
ED  - National Bureau of Economic Research.
TI  - What’s up with the Phillips Curve?
T2  - NBER working paper series
PY  - 2020///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - April 2020; Hardcopy version available to institutional subscribers
N2  - The business cycle is alive and well, and real variables respond to it more or less as they always did. Witness the Great Recession. Inflation, in contrast, has gone quiescent. This paper studies the sources of this disconnect using VARs and an estimated DSGE model. It finds that the disconnect is due primarily to the muted reaction of inflation to cost pressures, regardless of how they are measured--a flat aggregate supply curve. A shift in policy towards more forceful inflation stabilization also appears to have played some role by reducing the impact of demand shocks on the real economy. The evidence rules out stories centered around changes in the structure of the labor market or in how we should measure its tightness
UR  - https://www.nber.org/papers/w27003
UR  - http://dx.doi.org/10.3386/w27003
ER  -