# Phillips equation calibration

Hi. I have a question about the calibration. Thank you for guiding me

If the Phillips equation is as follows:

If we assume in steady state :

As a result :

Now if we consider that:

Can we do the calibration as below:

That depends on whether you assume full indexing or not. Your original PC essentially assumes a 0 inflation steady state. Usually, the terms are rather (\Pi_t-\bar \Pi)