Aguiar‐Conraria, Luís
[VerfasserIn]
;
Martins, Manuel M. F.
[Sonstige Person, Familie und Körperschaft];
Soares, Maria Joana
[Sonstige Person, Familie und Körperschaft]
Erschienen in:Bank of Finland Research Discussion Paper ; No. 12/2019
Umfang:
1 Online-Ressource (41 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.3419354
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 12, 2019 erstellt
Beschreibung:
We estimate the U.S. New Keynesian Phillips Curve in the time-frequency domain with continuous wavelet tools, to provide an integrated answer to the three most controversial issues on the Phillips Curve. (1) Has the short-run tradeoff been stable? (2) What has been the role of expectations? (3)Is there a long-run tradeoff? First, we fi nd that the short-run tradeoff is limited to some speci c episodes and short cycles and that there is no evidence of nonlinearities or structural breaks. Second, households expectations captured trend in flation and were anchored until the Great Recession, but not since 2008. Then, inflation over-reacted to expectations at short cycles. Finally, there is no signi cant long-run tradeoff. In the long-run, infl ation is explained by expectations