New-Keynesian macroeconomic models typically assume that any long-run trade-off between inflation and unemployment is ruled out. While this appears to be a reasonable characterization of the US economy, it is less clear that the natural rate hypothesis necessarily holds in a European country...

This study seeks to examine the stability of the Phillips Curve in Nigeria, as well as to ascertain the applicability of the popular Lucas Critique to the Phillips Curve in Nigeria. Using quarterly data from 1990Q1 to 2018Q3, the model is estimated with robust OLS that accounts for possible...

I apply the Johansen and Swensen (1999, 2004) method of testing exact rational expectations within the cointegrated VAR (Vector Auto-Regressive) model, to testing the New Keynesian (NK) model. This method permits the testing of rational expectation systems, while allowing for non-stationary...