Bratsiotis, George; Robinson, Wayne A. - 2016 - This version: January 13, 2015
The New Keynesian Phillips Curve (NKPC), driven by unit labor costs has been criticized for failing to match inflation … the fit of the NKPC, by introducing a fuller marginal cost proxy, "unit total costs", that is derived from both labor and … non-labor unit costs; the latter includes capital-related costs and production taxes. Borrowing costs are examined …
