Carlin, Wendy; Soskice, David - In: Contributions to Macroeconomics 5 (2005) 1, pp. 1299-1299
We develop a graphical 3-equation New Keynesian model for macroeconomic analysis to replace the traditional IS-LM-AS model. The new graphical IS-PC-MR model is a simple version of the one commonly used by central banks and captures the forward-looking thinking engaged in by the policy maker....