Is There a Stable Relationship between Unemployment and Future Inflation? Evidence from U.S. Cities

@inproceedings{Fitzgerald2014IsTA,
  title={Is There a Stable Relationship between Unemployment and Future Inflation? Evidence from U.S. Cities},
  author={T. Joseph Fitzgerald and Juan Pablo Nicolini},
  year={2014}
}
This paper makes two straightforward points that we argue are central to understanding the literature and debate surrounding the stability of the Phillips curve. First, the endogeneity of monetary policy implies that aggregate data are largely uninformative as to the existence of a stable relationship between unemployment and future inflation. Second, if the NAIRU model is assumed to be true, regional data can be used to identify the structural relationship between unemployment and future… CONTINUE READING

Figures and Tables from this paper.

References

Publications referenced by this paper.
SHOWING 1-10 OF 12 REFERENCES

Monetary Policy and the Quantity Theory of Money,

J. P. Nicolini
  • Mimeo. Research Department,
  • 2013
VIEW 7 EXCERPTS
HIGHLY INFLUENTIAL

Determinacy and Identification with Taylor Rules,

J. Cochrane
  • Journal of Political Economy,
  • 2011
VIEW 7 EXCERPTS
HIGHLY INFLUENTIAL

Are Phillips Curves Useful for Forecasting Inflation ?

VIEW 11 EXCERPTS
HIGHLY INFLUENTIAL

The Conquest of American Inflation

T. J. Sargent
  • 1999
VIEW 5 EXCERPTS
HIGHLY INFLUENTIAL

Expectations and the Neutrality of Money,

R. E. Lucas, Jr.
  • Journal of Economic Theory,
  • 1972
VIEW 3 EXCERPTS
HIGHLY INFLUENTIAL