Inflation dynamics
By: Frederic S. Mishkin.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series -- no. 13147.; Working paper series (National Bureau of Economic Research) -- working paper no. 13147.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 24
Subjects: Inflation (Finance); Monetary policy
Description: This paper first outlines the key stylized facts about changes in inflation dynamics in recent years: 1) inflation persistence has declined, 2) the Phillips curve has flattened, and 3) inflation has become less responsive to other shocks. These changes in inflation dynamics are interpreted as resulting from an anchoring of inflation expectations as a result of better monetary policy. The paper then goes on to draw implications for monetary policy from this interpretation, as well as implications for inflation forecasts.
Notes: "June 2007"

Includes bibliographical references (p. 21-22).

Also available in PDF from the NBER world wide web site (www.nber.org).