2 edition of **Inflation dynamics and the New Keynesian Phillips curve** found in the catalog.

Inflation dynamics and the New Keynesian Phillips curve

Jean-Marie Dufour

- 370 Want to read
- 27 Currently reading

Published
**2005**
by Bank of Canada in [Ottawa]
.

Written in English

- Inflation (Finance) -- Canada -- Econometric models.,
- Inflation (Finance) -- United States -- Econometric models.,
- Keynesian economics.,
- Phillips curve.

**Edition Notes**

Statement | by Jean-Marie Dufour, Lynda Khalaf and Maral Kichian. |

Series | Bank of Canada working paper -- 2005-27, Working paper (Bank of Canada) -- 2005-27. |

Contributions | Bank of Canada. |

The Physical Object | |
---|---|

Pagination | v, 23 p. ; |

Number of Pages | 23 |

ID Numbers | |

Open Library | OL19435884M |

Federal Reserve Bank of New York Staff Reports Trend Inflation and Inflation Persistence in the New Keynesian Phillips Curve Timothy Cogley Argia M. Sbordone Staff Report no. December This paper presents preliminary findings and is being distributed to economists and other interested readers solely to stimulate discussion and elicit Cited by: The Phillips curve is central to discussions of inflation dynamics and monetary policy. In particular, the New Keynesian Phillips Curve is a valuable tool to describe how past inflation, expected future inflation, and real marginal cost or an output gap drive the current inflation rate.

J Takuji Fueki *1 Kohei Maehashi *2. Full Text [PDF 1,KB] Abstract. Over the past decade, one of the central questions in macroeconomics has been the missing link observed between inflation and fluctuations in economic activity. In this paper we apply GMM estimation to assess the relevance of domestic versus external determinants of CPI inflation dynamics in a sample of OECD countries typically classified as open economies. The analysis is based on a variant of the small open-economy New Keynesian Phillips Curve derived in Galí and Monacelli (Rev Econ Stud –, ), Cited by:

We estimate a New Keynesian Phillips curve (NKPC) for Japan's economy. To obtain a better proxy of real marginal cost (RMC), we correct labor share by incorporating labor adjustment costs, material prices, and real wage rigidity. Our approach is unique in utilizing the information on firms' judgment about the labor gap, which implies the existence of labor adjustment costs. rigidities can explain inflation dynamics without relying on arbitrary backward-looking terms. In its baseline formulation, the Calvo model leads to a purely forward-looking New Keynesian Phillips curve (NKPC): inflation depends on the expected evolution of real marginal costs.

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"These notes contain the derivations for results stated without proof in Hornstein (). First, I derive the log-linear approximation of the inflation dynamics in the Calvo-model with elements of backward-looking pricing when the approximation takes place around a positive average inflation rate.

I derive a version of the "hybrid" New Keynesian Phillips Curve (NKPC). Inflation Dynamics and the New Keynesian Phillips Curve* Keith Sill is an assistant vice president and the director of the Real-Time Data Research Center in the Research The traditional Phillips curve suggests that inflation is related to the unemployment rate (actually its deviation from the economy’s normal rate of unemployment).

The. Downloadable. We introduce inventories into an otherwise standard New Keynesian model and study the implications for dynamics. Inventory holdings are motivated as a means to generate sales for We derive various representa- tions of the New Keynesian Phillips curve with inventories and show that one of these s is Cited by: 9.

Highlights We develop a New Keynesian monetary model with inventories for final goods. We show that the Phillips curve depends on the inventory–sales ratio. In order to analyze inflation dynamics we estimate the New Keynesian Phillips curve using GMM.

The inventory specification does not improve upon the standard New Keynesian Phillips curve. Time series for Cited by: 9. We use identification-robust methods to assess a New Keynesian Phillips Curve (NKPC) equation.

We focus on the Gali – Gertler [ Inflation dynamics: a structural econometric analysis. Journal of Monetary Econom –] Inflation dynamics and the New Keynesian Phillips curve book, for U.S. and Canadian by: This paper examines inflation dynamics in the United States sincewith a particular focus on the Great Recession.

A puzzle emerges when Phillips curves estimated over are used to predict inflation over inflation should have fallen by more than it. Topic 7: The New-Keynesian Phillips Curve The Phillips curve has been a central topic in macroeconomis since the s and its successes and failures have been a major element in the evolution over time of the discipline.

We will now discuss how a popular modern version of the Phillips curve, known as the “New Keynesian” Phillips curve File Size: KB. Downloadable (with restrictions). We introduce inventories into an otherwise standard New Keynesian model and study the implications for inflation dynamics.

Inventory holdings are motivated as a means to generate sales for demand-constrained firms. We derive various representations of the New Keynesian Phillips curve with inventories and show that one of. The New Keynesian Phillips curve The NKPC describes a simple relationship between inflation, the expectation that firms hold about future inflation, and real marginal costs, that is, the real (adjusted for inflation) resources that firms must spend to produce an extra (marginal) unit of their good or service.

Get this from a library. Inflation dynamics and the New Keynesian Phillips curve: an identification-robust econometric analysis. [Jean-Marie Dufour; Bank of Canada.] -- "The authors use identification-robust methods to assess the empirical adequacy of a New Keynesian Phillips curve (NKPC) equation.

They focus on Gal ̕and Gertler's () specification, for both U.S. Dynamics and the New Keynesian Phillips Curve Andreas Hornstein I n most industrialized economies, periods of above average inﬂation tend to be associated with above average economic activity, for example, as measured by a relatively low unemployment rate.

This statistical rela-tionship, known as the Phillips curve, is sometimes invoked when. alternative, the “New Keynesian” Phillips curve based on rational expectations and the Calvo () model of staggered price adjustment.

The last part of this paper asks whether the New Keynesian Phillips curve helps explain recent inﬂation behavior; the answer is no. Indeed, the. New Keynesian Phillips Curve and inflation dynamics in Australia Article in Economic Modelling 28(4) July with Reads How we measure 'reads'.

Inflation Dynamics and the New Keynesian Phillips Curve: An Identification Robust Econometric Analysis Article in Journal of Economic Dynamics and Control 30(9).

The behavior of households, firms, and monetary policy is captured by three equations: the dynamic IS equation, which pins down the determinants of aggregate demand, the New Keynesian Phillips curve, which characterizes the dynamics of inflation, and the monetary policy rule, which describes how the central bank sets the interest by: 1.

Inflation Dynamics and New Keynesian Phillips Curve in Australia by SYED KANWAR ABBAS BSc. (PU), MA. Econ (PU), MPhil. Econ (IIUI) Submitted in fulfillment of the requirements for the degree of Doctor of Philosophy Deakin University June, File Size: 1MB.

and 4 characterize the basic New Keynesian model. I first analyze households, then firms. Results are combined to establish general equilibrium. I derive a dynamic IS equation and a New Keynesian Phillips curve.

Determinacy and shocks are discussed in chapters 5 and 6. I perform some welfare analysis of monetary policy in chapters 7, 8 and Size: 1MB. Microfoundations of Inflation Persistence in the New Keynesian Phillips Curve Marcelle Chauvet and Insu Kim CQER Working Paper November Abstract: This paper proposes a dynamic stochastic general equilibrium model that endoge-nously generates inflation persistence.

We assume that although firms change prices periodi. Time-Varying U.S. In⁄ation Dynamics and the New Keynesian Phillips Curve Kevin J.

Lansingy Federal Reserve Bank of San Francisco Aug Abstract This paper introduces a form of boundedly-rational in⁄ation expectations in the New Keynesian Phillips curve. The representative agent is assumed to behave as an econome.

The Phillips curve is a single-equation economic model, named after William Phillips, describing an inverse relationship between rates of unemployment and corresponding rates of rises in wages that result within an economy.

Stated simply, decreased unemployment, (i.e., increased levels of employment) in an economy will correlate with higher rates of wage rises. Phillips curve uses some output gap measures as a proxy for real marginal cost rather than labour’s share of income.

Our results suggest that the pure rational expectations new Keynesian Phillips curve might be misspecified and that the hybrid new Keynesian Phillips curve fits the data best.

The relative importance of backward-looking Author: Cung Cao.Economic Quarterly Fall Evolving Inflation Dynamics and the New Keynesian Phillips Curve Andreas Hornstein.

Download article. In economic policy discussions, the negative correlation between inflation rates and unemployment rates or output growth, also known as the Phillips curve, is often invoked as representing a structural tradeoff.Similarly,Ball and Mazumder() argue that Phillips curves estimated over the period in the US cannot explain the behavior of in ation in the period.

Moreover, they conclude that the \Great Recession provides fresh evidence against the New Keynesian Phillips curve with rational expectations." They stress the fact that the t of.