Testing the Sticky Information Phillips Curve

Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve

This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly throughout the population. Compared to the commonly used sticky-price model, this sticky-information model displays three related properties that are more consistent with accepted views about the effects of monetary policy. First, disinflations are always contractionary (although...

The New Keynesian Phillips Curve : from Sticky Inflation to Sticky Prices

FEMES2006, seminar participants at the Universities of Auckland, Otago and Manchester, for useful comments, with particular thanks to Peter Phillips and Donggyu Sul for their constructive suggestions. All responsibility for errors and omissions lies, however, with the authors. Abstract The New Keynesian Phillips Curve (NKPC) model of inflation dynamics based on forward-looking expectations is o...

Threshold Effects in Sticky Information Philips Curve: Evidence from Iran

During the last decade, several studies have argued that sticky information model proposed by Mankiw and Reis (2002), in which firms update their information occasionally rather than instantaneously, explains some stylized facts about the inflation dynamics. Sticky information pricing model successfully captures the sluggish movement of aggregate prices in response to monetary policy shocks. De...

The Phillips Curve

The Wage Curve and the Phillips Curve

Blanchflower and Oswald (1994) have argued that, in regional data, the level of unemployment is related to the fevel of wages. This result is at variance with an application of the original Phillips curve to regional data, which would predict that the change in wages ought to be related to the unemployment rate. On the other hand, there is considerable empirical support for the expectations-aug...