Discussion paper

DP10010 The Phillips Curve in Ireland: 1935 - 2012

We study the determination of Irish inflation between 1935 and 2012 using a Phillips curve approach. We find that a simple backward-looking Phillips Curve that incorporates import prices is stable over the sample period and passes a number of diagnostic tests. We also consider the importance of UK and euro area inflation for Irish inflation. While UK inflation is significant in the period 1935 ? 1979, and euro area inflation is significant in the period 1980 ? 2012, we present evidence that suggests that these findings reflect common shocks.

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Citation

Gerlach, S, R Lydon and R Stuart (eds) (2014), “DP10010 The Phillips Curve in Ireland: 1935 - 2012”, CEPR Press Discussion Paper No. 10010. https://cepr.org/publications/dp10010