Lindé and Trabandt (2019) argue that a non-linear Phillips curve could explain both the ‘missing deflation’ in 2008–2010 and the slow recovery subsequently. ‘Put differently, even though economic growth may resume after a deep recession, price and wage inflation will only increase modestly until economic slack has subsided sufficiently’, p. 3. But, given the current historically low levels of unemployment in the USA, UK and Japan, this cannot be a satisfactory explanation, unless the NRU had previously shifted,
