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Globalization and the Output-inflation Tradeoff: New Time Series Evidence
Eijffinger, Sylvester C W; Qian, Zongxin - C.E.P.R. Discussion Papers - 2010
Recent cross-country studies on the globalization and output-inflation tradeoff correlation find openness has no significant effect on OECD countries. Those studies assume parameter constancy across countries. In this paper, we argue that this assumption does not hold for major industrialized...
Persistent link: https://www.econbiz.de/10008468668
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Sticky Prices and Volatile Output: Or When is a Phillips Curve not a Phillips Curve
Ellison, Martin; Scott, Andrew - C.E.P.R. Discussion Papers - 1998
We examine the effect of introducing price stickiness into a stochastic growth model subject to a cash in advance constraint. As has been previously documented, the introduction of price rigidities provides a substantial source of monetary non-neutrality; leads to a strong positive correlation...
Persistent link: https://www.econbiz.de/10005662388
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Calvo Contracts: A Critique
Minford, Patrick; Peel, David - C.E.P.R. Discussion Papers - 2004
The Calvo contract Phillips Curve is widely indexed for general inflation, using either core inflation or other backward-looking formulae. Such a Phillips Curve implies a high and persistent degree of nominal rigidity. It is argued here that optimal indexation would by contrast use the rational...
Persistent link: https://www.econbiz.de/10005792519
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Menu Costs and Asymmetric Price Adjustment
Ellingsen, Tore; Friberg, Richard; Hassler, John - C.E.P.R. Discussion Papers - 2006
We study optimal price setting by a monopolist in an infinite horizon model with stochastic costs, moderate inflation, and costly price adjustment. For realistic parameters, chosen to replicate observed frequencies of price changes, the model fits numerically several empirical regularities. In...
Persistent link: https://www.econbiz.de/10005123623
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The Phillips Curve Under State-Dependent Pricing
Bakhshi, Hasan; Khan, Hashmat; Rudolf, Barbara - C.E.P.R. Discussion Papers - 2006
This article is related to the large recent literature on Phillips curves in sticky- price equilibrium models. It differs in allowing for the degree of price stickiness to be determined endogenously. A closed-form solution for short-term inflation is derived from the dynamic stochastic general...
Persistent link: https://www.econbiz.de/10005124007
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New-Keynesian Macroeconomics and the Term Structure
Bekaert, Geert; Cho, Seonghoon; Moreno Ibáñez, Antonio - C.E.P.R. Discussion Papers - 2006
This article complements the structural New-Keynesian macro framework with a no-arbitrage affine term structure model. Whereas our methodology is general, we focus on an extended macro-model with unobservable processes for the inflation target and the natural rate of output which are filtered...
Persistent link: https://www.econbiz.de/10005136692
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Unemployment in an Estimated New Keynesian Model
Galí, Jordi; Smets, Frank; Wouters, Rafael - C.E.P.R. Discussion Papers - 2011
We reformulate the Smets-Wouters (2007) framework by embedding the theory of unemployment proposed in Galí (2011a,b). We estimate the resulting model using postwar U.S. data, while treating the unemployment rate as an additional observable variable. Our approach overcomes the lack of...
Persistent link: https://www.econbiz.de/10009024487
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A Phillips Curve for China
Scheibe, Jörg; Vines, David - C.E.P.R. Discussion Papers - 2005
This paper models Chinese inflation using an output gap Phillips curve. Inflation modelling for the world’s sixth largest economy is a still under-researched topic. We estimate a partially forward-looking Phillips curve as well as traditional backward-looking Phillips curves. Using quarterly...
Persistent link: https://www.econbiz.de/10005656372
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Two Naked Emperors? Concerns about the Stability and Growth Pact and Second Thoughts About Central Bank Independence
Buiter, Willem H. - C.E.P.R. Discussion Papers - 2003
This 2003 Institute for Fiscal Studies Lecture addresses two sets of issues relevant to current and prospective future E(M)U members: the consequences of the Stability and Growth Pact for fiscal-financial sustainability and macroeconomic stability, and some risks associated with operational...
Persistent link: https://www.econbiz.de/10005662197
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International Competition and Inflation: A New Keynesian Perspective
Guerrieri, Luca; Gust, Christopher; López-Salido, J David - C.E.P.R. Discussion Papers - 2009
competition to influence domestic inflation. By comparing the unrestricted and restricted specifications, we provide evidence that … foreign competition plays an important role in accounting for the behavior of inflation in the traded goods sector. Our … estimates suggest that foreign competition accounted for more than half of a 4 percentage point decline in domestic goods …
Persistent link: https://www.econbiz.de/10008558592