“Is the Phillips Curve Alive and Well after All? Inflation Expectations and the Missing Disinflation View in a new window” by Coibion and Gorodnichenko What questions are the authors attempting to answer in this paper? In the article Is the Phillip’s Curve Alive and Well after All? Inflation Expectations and the Missing Disinflation by Coibion and Gorodnichenko, the authors address a new meaning of the term ‘Phillips curve’, and they suggest a new understanding for the absent disinflation during the Great Recession (Coibion and Gorodnichenko 198). Nonetheless, the primary question was related to the evaluation of whether the household forecasts are more beneficial for the companies than the professional predictions (Coibion and Gorodnichenko 228). In this case, the authors of the article pay attention to the evaluation of the Phillips curve and understanding its advantages and drawbacks. Why are these questions important? The questions provided above are highly significant, as they explain the importance of the accuracy of the inflation forecasts. Finding the answers is critical, as the firms tend to rely on the expectations of the past, and this aspect is the primary cause of errors (Coibion and Gorodnichenko 228). In this case, discovering alternative approaches to professional forecasts will help see a clear image of the current economic situation in the market. Meanwhile, the outcomes can be utilized by the policymakers to enhance the efficiency of the national economy while paying attention to the various hidden factors including disinflation (Coibion and Gorodnichenko 228). Are recent inflation dynamics in the U.S. consistent with the predictions of the traditional Phillips curve? Nowadays, Phillip’s curve is still a universal model, which is used to understand the interdependence between the development of the prices and other macroeconomic forces (Coibion and Gorodnichenko 228). This connection is important, as it plays the role in defining the direction in the policy-making. Consequently, it could be said that it describes the current situation in the market in the United States of America. Nonetheless, Phillip’s curve is related to the number of uncertainties, which require continuous assessment (Yellen par. 4; Lansing 304). In the past years, the changes in inflation rates were presented by decline and value lower than 2% due to a decrease in the import, food, and energy prices (Yellen par. 4). These aspects tend to occur by Phillip’s model, and the inflation will experience an increase in the following years due to the potential contribution of economic growth and other favorable forces. Describe in detail the data the authors use to answer these questions. What kind of inflation expecta¬tion data do the authors use? The authors used various sources of data to provide the rationale for their hypothesis and find a suitable solution. In this case, the researchers addressed the topics, which have relation to understanding Phillip’s curve and minimizing the uncertainties (Coibion and Gorodnichenko 200). In this case, the authors utilized the inflation expectation data by focusing on CPI, Personal Consumption Expenditure, GDP deflator, and the Survey of Professional Forecasters, and crude oil prices (Coibion and Gorodnichenko 200-203). It could be said that these variables help see the presence of disinflation while showing the connection between the m