Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The Possible Unemployment Cost of Average Inflation below a Credible Target
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies. Centre for Economic Policy Research (CEPR), Bulgaria; National Bureau of Economic Research (NBER), USA.
2015 (English)In: American Economic Journal: Macroeconomics, ISSN 1945-7707, E-ISSN 1945-7715, Vol. 7, no 1, 258-296 p.Article in journal (Refereed) Published
Abstract [en]

If inflation expectations become firmly anchored at the inflation target even when average inflation deviates from the target, the long-run Phillips curve becomes nonvertical. During 1997-2011, average inflation expectations in Sweden have been close to the inflation target of 2 percent, whereas average inflation has fallen short of the target by 0.6 percentage points. The estimates reported suggest that the slope of the long-run Phillips curve is about 0.75. Then the average unemployment rate has been about 0.8 percentage points higher than if average inflation had been on target. This is a large unemployment cost of undershooting the inflation target.

Place, publisher, year, edition, pages
2015. Vol. 7, no 1, 258-296 p.
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:su:diva-114362DOI: 10.1257/mac.20130176ISI: 000347475900008OAI: oai:DiVA.org:su-114362DiVA: diva2:793133
Note

AuthorCount:1;

Available from: 2015-03-06 Created: 2015-03-02 Last updated: 2017-12-04Bibliographically approved

Open Access in DiVA

No full text

Other links

Publisher's full text

Search in DiVA

By author/editor
Svensson, Lars E. O.
By organisation
Institute for International Economic Studies
In the same journal
American Economic Journal: Macroeconomics
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 45 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf