Abstract We assess the effects of financial shocks on inflation, and to what extent can account for “missing disinflation” during Great Recession. apply a Bayesian vector autoregressive model US data identify through combination narrative short-run sign restrictions. Our main finding is that contractionary temporarily increase inflation. This result withstands large battery robustness checks. N...

Sector-level Phillips curves are estimated in French data. There is considerable heterogeneity across sectors, with vastly different estimates of the backward looking component of inflation and the duration of nominal rigidities. A multi-sector model of inflation dynamics is calibrated on the basis of these sectoral estimates. Aggregate inflation, simulated on the basis of heterogeneous sectors...

Since Friedman (1968), the traditional derivation of the accelerationist Phillips curve has related expected real wage inflation to the unemployment rate and then invoked markup pricing and adaptive expectations to generate the accelerationist price inflation equation. Blanchflower and Oswald (1994) have argued that microeconomic evidence of a low autoregression coefficient in real wage regress...