Inflation Forecasts and the New Keynesian Phillips Curve
Swensen (2006), The new Keynesian Phillips curve
for a small open economy.
Little in the work on the New Keynesian Phillips curve
(NKPC) challenges the Friedman assertion that policymakers lack sufficient information about the structure of the economy in order to implement an activist monetary policy.
The last part of this paper asks whether the New Keynesian Phillips curve
helps explain the recent behavior of inflation; the answer is no.
In Section II, we present conditions under which the first-order conditions characterizing firms' optimal pricing decision give rise to a New Keynesian Phillips Curve
when expectations are potentially nonrational.
The new Keynesian Phillips curve
characterizes inflation dynamics according to:
Reis (2002) Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve
So far, the empirical evidence on the New Keynesian Phillips curve
has been mixed (see, for example, Gall & Gertler, 1999; Gall et al.
A note on the new Keynesian Phillips curve
in a time-varying coefficient environment: Some European evidence.
The New Keynesian Phillips Curve
really amounts to nothing more than short lags of inflation, the current value of unemployment relative to NAIRU [the non-accelerating-inflation rate of unemployment] and that's it.
We then turn to examples that highlight the effects of learning and experimentation for two sources of uncertainty in the benchmark New Keynesian Phillips curve
Therefore, the single equation estimation techniques were chosen, namely the P-star model originally developed by Tatom (1990) and the New Keynesian Phillips Curve
(NKPC) approach in the form analyzed by Rudd and Whelan (2001, 2005).