Research Discussion Paper – RDP 9706 Is the Phillips Curve A Curve? Some Evidence and Implications for Australia Guy Debelle and James Vickery

Contents

• Introduction
• Models of the Short-run Phillips Curve
• Estimating Linear and Non-linear Phillips Curves
• Empirical Results
• Policy Implications of Non-linearities
• Conclusion
• Appendix A: The Kalman Filter
• Appendix B: Further Estimation Results
• References

This paper owes a great deal to Doug Laxton. We also thank Phil Lowe, Glenn Stevens and participants in a seminar at the Reserve Bank of Australia for helpful comments. The views expressed in this paper are those of the authors and not necessarily those of the Reserve Bank of Australia. Use of any results from this paper should clearly attribute the work to the authors and not to the Reserve Bank of Australia.