Inflation Dynamics and the New Keynesian Phillips Curve in Four Central European Countries

2011 ◽  
Vol 47 (5) ◽  
pp. 71-100 ◽  
Author(s):  
Bořek Vašíček
Keyword(s):  
Phillips Curve ◽  
European Countries ◽  
New Keynesian ◽  
New Keynesian Phillips Curve ◽  
Inflation Dynamics ◽  
Central European

New Keynesian Phillips Curve and inflation dynamics in Australia

2011 ◽  
Vol 28 (4) ◽  
pp. 2022-2033 ◽  
Author(s):  
Syed Kanwar Abbas ◽  
Pasquale M. Sgro
Keyword(s):  
Phillips Curve ◽  
New Keynesian ◽  
New Keynesian Phillips Curve ◽  
Inflation Dynamics

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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