Yesterday, I did a post discussing a recent WSJ article on inflation that was partly motivated by research by James Stock and Mark Watson. They found evidence that the recent apparent flattening of the Phillips curve may reflect price stickiness in some important sectors of the economy.
The WSJ article suggested that these findings might help to explain why the Fed was having trouble hitting its inflation target. In the previous post I expressed doubt that a flatter short run Phillips curve explains why the Fed has fallen short of the 2% inflation target, although