Barnichon, RégisMesters, GeertUniversitat Pompeu Fabra. Departament d'Economia i Empresa2020-05-252020-05-252019-01-11http://hdl.handle.net/10230/44726We propose a model-free approach for determining the inflation-unemployment trade-off faced by a central bank, i.e., the ability of a central bank to transform unemployment into inflation (and vice versa) via its interest rate policy. We introduce the Phillips multiplier as a statistic to non-parametrically characterize the trade-off and its dynamic nature. We compute the Phillips multiplier for the US, UK and Canada and document that the trade-off went from being very large in the pre-1990 sample period to being small (but significant) post-1990 with the onset of inflation targeting and the anchoring of inflation expectations.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative CommonsThe Phillips multiplier<resourceType xmlns="http://datacite.org/schema/kernel-3" resourceTypeGeneral="Other">info:eu-repo/semantics/workingPaper</resourceType><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">marginal rate of transformation</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">inflation-unemployment</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">trade-off</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">dynamic multiplier</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">instrumental variables</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">phillips curve</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Macroeconomics and International Economics</subject><rights xmlns="http://datacite.org/schema/kernel-3">info:eu-repo/semantics/openAccess</rights>