The New Keynesian sticky-price model has become increasingly popular for monetary-policy analysis. However, there have been conflicting results on the empirical performance of the model. In this paper, I attempt to reconcile these conflicting claims by examining various specifications of the model within the context of a single framework. I find that the New Keynesian model does not fit the U.S...

Based on US state-level data for the period 1982-2016, two reduced-form versions of New Keynesian wage Phillips curves are examined. These based either sticky nominal wages or real-wage rigidity. The endogeneity unemployment is taken into account by instrumentation and use common correlated effects (CCE) mean group (MG) methods. This first time that this methodology has been applied in context....

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...

We study identiÞcation in a class of three-equation monetary models. We argue that these models are typically not identiÞed. For any given exactly identiÞed model, we provide an algorithm that generates a class of equivalent models that have the same reduced form. We use our algorithm to provide four examples of the consequences of lack of identiÞcation. In our Þrst two examples we show that it...

Estimates of the effect of different international monetary regimes on the parameters of the Phillips curve, the Keynesian consumption function, and other reduced-form macroeconomic relationships are given. The estimates provide a quantitative assessment of the importance of the Lucas critique for such regime shifts. The estimates are calculated by stochastically simulating an estimated multico...

The Hybrid New Keynesian Philips Curve (HNKPC) is an update of the Curve. HNKPC discusses combination forward looking and backward on inflation rate. In this case, shock rate to unemployment will be analyzed according HNKPC. dynamics used from monetary policy aspect targeting framework (ITF). This research also combine various elements in new consensus macroeconomic ASEAN-3 as up-to-date idea. ...