Globalisation and the slope of the Phillips curve

Emanuel Kohlscheen and Richhild Moessner

Economics Letters, 2022, vol. 216, issue C

Abstract: We study the effects of globalisation on the slope of the New Keynesian Phillips curve for CPI inflation, based on a panel of 35 countries. We find that the output gap generally has a significant positive effect on inflation, but that this effect decreases as integration in the global economy increases. We conclude that the advance of globalisation has been a key force behind the flattening of price Phillips curves.

Keywords: Inflation; Globalisation; Output gap; Phillips curve (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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Working Paper: Globalisation and the Slope of the Phillips Curve (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:216:y:2022:i:c:s0165176522001732

DOI: 10.1016/j.econlet.2022.110587

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