A Model of the Fed's View on Inflation

By T. Hasenzagl, Filippo Pellegrino, L. Reichlin, G. Ricco. Review of Economics and Statistics, 2017

61 citations recorded by the source corpus.

Abstract We develop a medium-size semistructural time series model of inflation dynamics that is consistent with the view, often expressed by central banks, that three components are important: a trend anchored by long-run expectations, a Phillips curve, and temporary fluctuations in energy prices. We find that a stable long-term inflation trend and a well-identified steep Phillips curve are consistent with the data, but they imply potential output declining since the new millennium and energy prices affecting headline inflation not only via the Phillips curve but also via an independent expectational channel.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/601cbc486387583f5dc940e0bad9a9a5665ade23

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

  1. M. McLeay
  2. Silvana Tenreyro
  3. Ben Shepherd
  4. Yoto V. Yotov
  5. Mario Larch
  6. Thierry Mayer
  7. J.M.C. Santos Silva
  8. Peter H. Egger

Citations in the corpus