What Do Micro Price Data Tell Us on the Validity of the New Keynesian Phillips Curve?
نویسندگان
چکیده
منابع مشابه
Identifying the New Keynesian Phillips Curve
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 کاملPolicy Implications of the New Keynesian Phillips Curve
T he theoretical framework within which optimal monetary policy was studied before the arrival of the New Keynesian Phillips curve (NKPC), but after economists had become comfortable using dynamic, optimizing, general equilibrium models and a welfare-maximizing criterion for policy analysis, was one in which the central source of nominal nonneutrality was a demand for money. At center stage in ...
متن کاملA Simple Test of the New Keynesian Phillips Curve
We propose a way to test the New Keynesian Phillips Curve (NKPC) without estimating the structural parameters governing the curve, i.e. price stickiness and firms’ backwardness. Using this strategy we can test the NKPC avoiding the identification problems related to the GMM approach. We find that it does not exist a combination of the structural parameters which is consistent with US data. This...
متن کاملTesting an Alternative Price-Setting Behavior in New Keynesian Phillips Curve: Extrapolative Price-Setting Mechanism
Hybrid New Keynesian Phillips curve (NKPC) has been widely used in monetary policy literature (e.g. Gali and Gertler, 1999) as it contains both forward-looking and backward-looking components and therefore fits the data well. A typical backward-looking part of price setting behavior assumes that firms use the previous period’s price. In this paper, we propose a generalized version of the hybrid...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Economics
سال: 2008
ISSN: 1864-6042
DOI: 10.5018/economics-ejournal.ja.2008-19