scholarly journals The Small Open-Economy New Keynesian Phillips Curve: Empirical Evidence and Implied Inflation Dynamics

2009 ◽  
Vol 22 (2) ◽  
pp. 317-337 ◽  
Author(s):  
Alexander Mihailov ◽  
Fabio Rumler ◽  
Johann Scharler
Keyword(s):  
Empirical Evidence ◽  
Open Economy ◽  
Phillips Curve ◽  
Small Open Economy ◽  
New Keynesian ◽  
New Keynesian Phillips Curve ◽  
Inflation Dynamics

The New Keynesian Phillips Curve in a Small Open Economy: Empirical Evidence from Australia

2016 ◽  
Vol 92 (298) ◽  
pp. 409-434 ◽  
Author(s):  
Syed Kanwar Abbas ◽  
Prasad Sankar Bhattacharya ◽  
Debdulal Mallick ◽  
Pasquale Sgro
Keyword(s):  
Empirical Evidence ◽  
Open Economy ◽  
Phillips Curve ◽  
Small Open Economy ◽  
New Keynesian ◽  
New Keynesian Phillips Curve

scholarly journals Can Rational Expectations Sticky-Price Models Explain Inflation Dynamics?

2006 ◽  
Vol 96 (1) ◽  
pp. 303-320 ◽  
Author(s):  
Jeremy Rudd ◽  
Karl Whelan
Keyword(s):  
Closed Form ◽  
Empirical Evidence ◽  
Hybrid Model ◽  
Rational Expectations ◽  
Phillips Curve ◽  
New Keynesian ◽  
Output Gap ◽  
New Keynesian Phillips Curve ◽  
Inflation Dynamics ◽  
Forward Looking

The canonical inflation specification in sticky-price rational expectations models (the new-Keynesian Phillips curve) is often criticized for failing to account for the dependence of inflation on its own lags. In response, many studies employ a “hybrid” specification in which inflation depends on its lagged and expected future values, together with a driving variable such as the output gap. We consider some simple tests of the hybrid model that are derived from its closed form. We find that the hybrid model describes inflation dynamics poorly, and find little empirical evidence for the type of rational, forward-looking behavior that the model implies.

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