Zhang, Chengsi - In: Emerging Markets Finance and Trade 49 (2013) 5, pp. 82-98
This paper shows that the error term in the stylized New Keynesian Phillips curve (NKPC) model for China is significantly serially correlated. We propose an extended NKPC model for China, which can be easily rationalized in terms of sticky-price setting of backward-looking firms. Empirical...
