Working Papers

2018-15 | December 2018


Inflation Globally


The Phillips curve remains central to stabilization policy. Increasing financial linkages, international supply chains, and managed exchange rate policy have given core currencies an outsized influence on the domestic affairs of world economies. We exploit such influence as a source of exogenous variation to examine the effects of the recent financial crisis on the Phillips curve mechanism. Using a difference-in-differences approach, and comparing countries before and after the 2008 financial crisis sorted by whether they endured or escaped the crisis, we are able to assess the evolution of the Phillips curve globally.

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Article Citation

Jordà, Òscar, and Fernanda Nechio. 2018. "Inflation Globally," Federal Reserve Bank of San Francisco Working Paper 2018-15. Available at