Yet, as the recovery proved more subdued and vulnerable to outside shocks than we had expected, and the descent of inflation to the lower portion of the price stability range accelerated and became more entrenched, our attention shifted to a wide spectrum of inflation expectations.
The risk was that, unlike in previous episodes of sharp oil price reversals, inflation expectations might lose their resilience, due to accumulating evidence that the return of headline inflation to our objective had been repeatedly put back. 3  Gordon, R. (2013), “The Philips Curve is Alive and well and the NAIRU During the slow recovery”, NBER Working Paper, No 19390, August 2013.