Dennery, Charles2019-08-262021-08-222019-08-262019-08-2310.1016/j.econlet.2019.108642https://infoscience.epfl.ch/handle/20.500.14299/160643Dampened inflation expectations have a significant impact on the New Keynesian Phillips Curve. This dampening not only flattens the long run Phillips Curve, but it can also lead to a bias in the estimation of its short run slope. It also affects the response of a small NK model to demand shocks, and affects the optimal monetary policy: in particular, the price targeting result of the Ramsey policy is violated when there is dampening.Anchored expectationsPhillips CurveRamsey policytext::journal::journal article::research article