The Possible Unemployment Cost of Average Inflation below a Credible Target

  title={The Possible Unemployment Cost of Average Inflation below a Credible Target},
  author={Lars E. O. Svensson},
 Average inflation below target in Sweden 1997-2011  Average inflation expectations (Prospera) close to target 19972011 Questions to be answered:  If inflation expectations stuck at target when average inflation deviates from target, non-vertical long-run Phillips curve?  If lower average inflation, higher average unemployment?  If estimates of sustainable unemployment rate based on historical averages, bias?  Policy conclusions for the future? 

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