The ‘New Keynesian’ Phillips curve: closed economy versus open economy
نویسندگان
چکیده
منابع مشابه
The ‘ New Keynesian ’ Phillips curve : closed economy versus open economy
The paper extends Woodford’s [Optimizing models with nominal rigidities, Chapter 3 of Interest and prices: foundations of a theory of monetary policy, Princeton University, 2000; unpublished manuscript] analysis of the closed economy Phillips curve to an open economy with both commodity trade and capital mobility. We show that consumption smoothing, which comes with the opening of the capital m...
متن کاملEstimates of the Open Economy New Keynesian Phillips Curve for Euro Area Countries ∗ †
In this paper an open economy model of the New Keynesian Phillips Curve incorporating three different factors of production, domestic labor and imported as well as domestically produced intermediate goods, is developed and estimated for 9 euro area countries and the euro area aggregate. This general model nests existing closed economy and open economy models as special cases. We find that struc...
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Phillips curves are central to discussions of inflation dynamics and monetary policy. New Keynesian Phillips curves describe how past inflation, expected future inflation, and a measure of real marginal cost or an output gap drive the current inflation rate. This paper studies the (potential) weak identification of these curves under generalized methods of moments (GMM) and traces this syndrome...
متن کاملIntroduction to the New Keynesian Phillips Curve
I n most industrialized economies inflation tends to be pro-cyclical; that is, inflation is high during times of high economic activity. When economic activity is measured by the unemployment rate this statistical relationship is known as the Phillips curve. The Phillips curve is sometimes viewed as a menu for monetary policymakers, that is, they can choose between high inflation and low unempl...
متن کاملKeynesian Macrodynamics and the Phillips Curve. An Estimated Baseline Macromodel for the U.S. Economy
In this paper we formulate a baseline disequilibrium AS-AD model and empirically estimate it with time series data for the US-economy. The version of the model used here exhibits a Phillips-curve, a dynamic IS curve and a Taylor interest rate rule. It is based on sticky wages and prices, perfect foresight of current inflation rates and adaptive expectations concerning the inflation climate in w...
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ژورنال
عنوان ژورنال: Economics Letters
سال: 2002
ISSN: 0165-1765
DOI: 10.1016/s0165-1765(01)00588-2