Sectoral inflation and the Phillips curve: what has changed since the Great Recession?

Maria Luengo-Prado, Nikhil Rao and Viacheslav Sheremirov

No 17-5, Current Policy Perspectives from Federal Reserve Bank of Boston

Abstract: Using sectoral data at a medium level of aggregation, we find that price changes became less responsive to aggregate unemployment around 2009?2010. The slopes of the disaggregated Phillips curves diminished in many sectors, including housing and some services. We also document a decrease in sectoral inflation persistence, suggesting an increase in the weight of the forward-looking inflation expectation component and a decrease in the weight of the backward-looking component.

Keywords: Phillips curve; inflation persistence; disaggregate price indices (search for similar items in EconPapers)
JEL-codes: E24 E31 E32 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2017-11-01
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (6)

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Journal Article: Sectoral inflation and the Phillips curve: What has changed since the Great Recession? (2018)
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