Cloutier, Mark Andrew. “Rethinking the Phillips Curve”, Boston College, 2012. http://hdl.handle.net/2345/2654.
Abstract
A study of recent inflation dynamics in the G-7, this paper discusses a problem with the Phillips curve which arose during the Great Recession (2008-2011). We find that work with time-varying slope, expectation anchoring, and core inflation can correct for the under-predictions that develop in the Phillips Curve during the recession, improving its accuracy throughout the G-7.
