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Monday, November 21, 2011

Another look at Nominal GDP targeting.

If inflation expectations increase, doesn't that shift the Phillips curve?


"Stacks" Edwards said...

Based on historical evidence, only if the policy of attempting to increase inflation expectations were to continue into the long run. Isnt there a SR and LR PC?

Do you believe the PC has shifted since QE(s)?

EconPirate said...

Dr. P, wouldn't it be fair to say that a sizable amount of the 60s & 70s Phillips Curve shift(s) were attributable to central bank policy? (ie: targeting interest rates in an inflationary environment)

Randall Parker said...

EconP: That sounds right to me. Let's not forget the supply shocks either.