Erschienen in:Bank of Finland Research Discussion Paper ; No. 31/2014
Umfang:
1 Online-Ressource (12 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.2545356
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 16, 2014 erstellt
Beschreibung:
This paper examines recent changes in the cyclicality of euro area inflation. We estimate time-varying parameters for the hybrid New Keynesian Phillips curve using three alternative proxies for the output gap. Our analysis, which is based on the state-space method with Kalman filtering techniques, suggests that the slope of the euro area Phillips curve has become steeper since 2012. Thus, the current low level of inflation and persistently negative output gap increase the risk that euro area inflation will stay below the monetary policy target for an extended period