This paper revisits the relationship between unemployment and inflation in long-run through lens of a New-Keynesian model augmented with downward nominal wage rigidity (DNWR). It finds that when labor market is affected by DNWR, this goes beyond tradeoff first moments provided short-run Phillips curve. Higher volatility raises at low-frequency. Increased makes wages more volatile but constrains...

The subject of this paper is the estimation of the Phillips curve in Thailand. The aim of the estimation is to ...t the Phillips curve as part of a small-scale, log-linearised structural model for the country, which is suitable to form the basis for a future simulation exercise to ...nd an optimum monetary policy rule. A linear form of the Phillips curve is estimated using ordinary least square...

We establish that the Phillips curve is persistence-dependent: inflation responds differently to persistent versus moderately (or transient) fluctuations in unemployment rate gap. This persistence-dependent relationship appears align with business-cycle stages and thus consistent existing theory. Previous work fails model this dependence, thereby finding numerous "inflation puzzles" – e.g., mis...

Wells and other conference participants for their comments on the earlier version of this paper. The views expressed in this paper are those of the authors and should not be attributed to the Reserve Bank of Australia.

In most macroeconomic models, the stability of the solution path implies that the system is covariancestationary and hence admits a Wold representation. The ability to estimate this Wold representation semi-parametrically by local projections (Jordà, 2005), even when the process for the solution path is unknown or unconventional, can be exploited to estimate the model’s parameters by minimum di...