A Simple Post-Crisis EMU Phillips Curve — Implications for Monetary Policy

Peter Hennecke ()
Additional contact information
Peter Hennecke: University of Rostock

Intereconomics: Review of European Economic Policy, 2018, vol. 53, issue 6, 333-336

Abstract: Abstract The persistently low wage and price growth in the EMU after the Great Recession of 2009 led some economic observers to conclude that the Phillips Curve has broken down and that the ECB should therefore reconsider its infl ation target. This study makes use of the considerable cross-country and cross-time heterogeneity in terms of infl ation and capacity utilisation of EMU member states after the Great Recession to investigate whether these claims are corroborated by empirical evidence. The results point to the conclusion that the Phillips Curve is alive and well in the EMU and centred at or only slightly below the ECB’s inflation target. Therefore, a readjustment of the infl ation target seems unjustified. Furthermore, as the ECB can expect inflation to return to its target, it possibly can accelerate tapering its unconventional monetary policy measures as the recovery continues.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s10272-018-0778-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:intere:v:53:y:2018:i:6:d:10.1007_s10272-018-0778-8

Ordering information: This journal article can be ordered from
http://link.springer.de/orders.htm

DOI: 10.1007/s10272-018-0778-8

Access Statistics for this article

Intereconomics: Review of European Economic Policy is currently edited by Christian Breuer

More articles in Intereconomics: Review of European Economic Policy from Springer, ZBW - Leibniz Information Centre for Economics, Centre for European Policy Studies (CEPS)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().