Orland, Andreas; Roos, Michael W.M. - In: Journal of Economic Dynamics and Control 37 (2013) 11, pp. 2270-2286
Empirical estimations of the New Keynesian Phillips curve support hybrid versions with a positive weight on lagged inflation and a weight less than one on expected inflation. We argue that myopic price setting of some agents explains the low weight on expected inflation. The lagged term can be...