Product market regulation, trend inflation and inflation dynamics in the new Keynesian Phillips curve

► We investigate the impact of product market regulation on inflation since 1980. ► We use a new Keynesian Phillips Curve with firms' entry and non zero trend inflation. ► We assess the relevance of this NKPC in the US and France with VAR expectations. ► We use OECD indicator on product market regulation for both countries. ► It is a good candidate as an exogenous source of the persistence in inflation.