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Reconciling the New Keynesian model with observed persistence

Leong, Kenneth - Suomen Pankki - 2002

persistence, is instrumental in generating inflation persistence. However, the combination of full forward-looking behaviour and … inflation, the output gap, the nominal interest rate, as well as the real exchange rate. …

Persistent link: https://www.econbiz.de/10005190780

Forecasting with a forward-looking DGE model: combining long-run views of financial markets with macro forecasting

Männistö, Hanna-Leena - Suomen Pankki - 2005

have used for illustrative purposes, we pinned down the long-run inflation expectations and domestic and foreign potential …

Persistent link: https://www.econbiz.de/10005423701

Estimating open economy Phillips curves for the euro area with directly measured expectations

Paloviita, Maritta - Suomen Pankki - 2008

This paper examines euro area inflation dynamics by estimating open economy New Keynesian Phillips curves based on the … survey data and OECD inflation forecasts are used to proxy inflation expectations. The results suggest that, compared with a … closed economy New Keynesian Phillips curve, euro area inflation dynamics are better captured by the open economy …

Persistent link: https://www.econbiz.de/10005648875

Monetary policy and learning in an open economy

Ellison, Martin; Sarno, Lucio; Vilmunen, Jouko - Suomen Pankki - 2004

In this paper, we examine the incentives for central bank activism and caution in a two-country open-economy model with uncertainty and learning. We find that the presence of a strategic interaction between the home and foreign central banks creates an additional motivation for caution in...

Persistent link: https://www.econbiz.de/10005423715