What's Happened to the Phillips Curve?

  title={What's Happened to the Phillips Curve?},
  author={Flint Brayton and John M. Roberts and John C. Williams},
  journal={Monetary Economics},
The simultaneous occurrence in the second half of the 1990s of low and falling price inflation and low unemployment appears to be at odds with the properties of a standard Phillips curve. We find this result in a model in which inflation depends on the unemployment rate, past inflation, and conventional measures of price supply shocks. We show that, in such a model, long lags of past inflation are preferred to short lags, and that with long lags, the NAIRU is estimated precisely but is unstable… 
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