Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/253653
Authors: 
Oraby, Ramy
Year of Publication: 
2022
Citation: 
[Journal:] Journal of Comments and Replications in Economics (JCRE) [ISSN:] 2749-988X [Volume:] 1 [Year:] 2022 [Issue:] 2022-2 [Pages:] 1-21
Publisher: 
ZBW - Leibniz Information Centre for Economics, Kiel, Hamburg
Abstract: 
This paper replicates the main analysis of Svensson (2015) with some expansion to the original analysis, mainly for the United States. Overall, the replication exercise successfully confirms the conclusions of Svensson (2015). In both Sweden and the United States, empirical evidence sup- ports the existence of a non-vertical long run Phillips curve. The slope of the long run Phillips curve recorded -0.75 in Sweden and -0.23 in the United States. While the average inflation rate in the United States was very close to its targeted level, the average inflation rate in Sweden was 0.6 per- centage points below its targeted level over the sample period. The deviation of inflation rate from its targeted level in Sweden resulted in an unemployment cost equivalent to 0.8 percentage points over the sample period where the average unemployment rate recorded 7.4 percent compared with an estimated 6.6 percent had the average inflation rate been at its targeted level.
Subjects: 
Monetary Policy
Central Banks
Phillips Curve
Inflation
Expectations
Unemployment
Replication Study
JEL: 
D84
E24
E31
E52
E58
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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