• Thumbnail

    Trend, seasonal, and sectorial inflation in the Euro Area 

    Stock, James H.; Watson, Mark W. (Banco Central de Chile, 2020)
    A central focus of monetary policy is the underlying rate of inflation that might be expected to prevail over a horizon of one or two years. Because inflation is estimated from noisy data, the estimation of this underlying ...
  • Thumbnail

    Inflation globally 

    Jorda, Óscar; Nechio, Fernanda (Banco Central de Chile, 2020)
    The fortunes of the Phillips curve have ebbed and flowed ever since it was proposed by Phillips (1958). Although its origins are primarily as an empirical regularity, there is now a vast literature that provides more ...
  • Thumbnail

    The supply-side origins of U.S. inflation 

    Hobijn, Bart (Banco Central de Chile, 2020)
    In recent years, we have not seen much of a negative correlation between inflation, the time series plotted in figure 1, and measures of resource slack, based on real GDP plotted in figure 2. This flattening of the ...
  • Thumbnail

    Trade exposure and the evolution of inflation dynamics 

    Gilchrist, Simon; Zakrajsek, Egon (Banco Central de Chile, 2020)
    The Phillips curve—the relationship between price inflation and fluctuations in economic activity— is a central building block of economic models that allow for nominal rigidities and are relied upon by central banks ...
  • Thumbnail

    Has the U.S. wage phillips curve flattened? A semi-structural exploration 

    Galí, Jordi; Gambetti, Luca (Banco Central de Chile, 2020)
    The deep and prolonged recession triggered by the global financial crisis of 2007–2009 led to a large increase in the unemployment rate in most advanced economies. Ten years later, at the time of writing this paper, the ...