Time variation, asymmetry and threshold effect in Malta's Phillips curve

William Gatt

No WP/02/2016, CBM Working Papers from Central Bank of Malta

Abstract: This paper estimates a Phillips curve for Malta using data since the 1960s and presents evidence that the relationship has flattened over time, implying that the link between inflation and economic activity has weakened. Further analysis finds that this phenomenon was driven by downward price stickiness, whereby the responsiveness of price inflation is limited during economic slowdowns; however the Phillips curve was and remains alive during economic booms.

JEL-codes: C11 C32 E31 E32 O11 (search for similar items in EconPapers)
Pages: 29 pgs
Date: 2016
New Economics Papers: this item is included in nep-his and nep-mac
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https://www.centralbankmalta.org/file.aspx?f=31366 First version, 2016 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:mlt:wpaper:0216

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