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Relative Goods' Prices, Pure Inflation, and the Phillips Correlation
Reis, Ricardo - 2007
three independent components: idiosyncratic relative-price changes, a low-dimensional index of aggregate relative-price … the model on U.S. data since 1959, and it presents a simple structural model that relates the three components of price … changes to fundamental economic shocks. We use the estimates of the pure inflation and aggregate relative-price components to …
Persistent link: https://www.econbiz.de/10012465024
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Productivity Growth and the Phillips Curve
Ball, Laurence - 2001
We present a model in which workers' aspirations for wage increases adjust slowly to shifts in productivity growth. The model yields a Phillips curve with a new variable: the gap between productivity growth and an average of past wage growth. Empirically, this variable shows up strongly in the...
Persistent link: https://www.econbiz.de/10012470298
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The "New Keynesian" Phillips Curve : Closed Economy vs. Open Economy
Razin, Assaf - 2001
The paper extends Woodford's (2000) analysis of the closed economy Phillips curve to an open economy with both commodity trade and capital mobility. We show that consumption smoothing, which comes with the opening of the capital market, raises the degree of strategic complementarity among...
Persistent link: https://www.econbiz.de/10012470411
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Sticky Information Versus Sticky Prices : A Proposal to Replace the New Keynesian Phillips Curve
Mankiw, N. Gregory - 2001
This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly … throughout the population. Compared to the commonly used sticky-price model, this sticky-information model displays three …
Persistent link: https://www.econbiz.de/10012470434
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Near-Rationality and Inflation in Two Monetary Regimes
Ball, Laurence - 2000
Sticky-price models with rational expectations fail to capture the inertia in U.S. inflation. Models with backward … information on past inflation optimally, but they ignore other variables. The paper tests sticky-price models with near …
Persistent link: https://www.econbiz.de/10012470750
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The Phillips Curve is Back? Using Panel Data to Analyze the Relationship Between Unemployment and Inflation in an Open Economy
DiNardo, John - 1999
Expanding on an approach suggested by Ashenfelter (1984), we extend the Phillips curve to an open economy and exploit panel data to estimate the textbook 'expectations augmented' Phillips curve with a market-based and observable measure of inflation expectations. We develop this measure using...
Persistent link: https://www.econbiz.de/10012471456
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The Band Pass Filter
Christiano, Lawrence J. - 1999
The `ideal' band pass filter can be used to isolate the component of a time series that lies within a particular band of frequencies. However, applying this filter requires a dataset of infinite length. In practice, some sort of approximation is needed. Using projections, we derive...
Persistent link: https://www.econbiz.de/10012471533
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Wage Dynamics : Reconciling Theory and Evidence
Blanchard, Olivier Jean - 1999
U.S. macroeconomic evidence shows a negative relation between the rate of change of wages and unemployment. In contrast, most theories of wage determination imply a negative relation between the level of wages and unemployment. In this paper, we ask whether one can reconcile the empirical...
Persistent link: https://www.econbiz.de/10012471883
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The Alleged Instability of Nominal Income Targeting
McCallum, Bennett T. - 1997
Recently it has been argued that a monetary policy of nominal income and targeting" would result in dynamically unstable processes for output and inflation. That results holds in a" theoretical model that includes backward-looking IS an Phillips curve relations rather special and theoretically...
Persistent link: https://www.econbiz.de/10012472522
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Does Inflation "Grease the Wheels of the Labor Market"?
Card, David - 1996
If nominal wages are downward rigid, moderate levels of inflation may improve labor market efficiency by facilitating real wage cuts. In this paper we attempt to test the hypothesis that downward real wage changes occur more readily in higher-inflation environments. Using individual wage change...
Persistent link: https://www.econbiz.de/10012473318