Inflation targeting needs to be supplemented by an economic growth target so that central banks will not adopt monetary policy which results in stagnation. There is no guarantee that the economy will move towards full employment by itself when the inflation rate is kept between two to three per cent. Monetary policy does not have a comparative advantage in achieving price stability. Svensson's ...

Abstract The recent flattening of the Phillips curve has stimulated new empirical research and theoretical discussions regarding nonlinear nature changes in parameters. objective present paper is twofold: to detect relevant type implied nonlinearity look for some general model capable generating a mimicking one. We find evidence convex US price curve, from 1961 q1 2019 q4, assessed both by piec...