sticky-price version of the New Keynesian Phillips Curve does a good job of approximating US inflation dynamics. However … to the entire underlying model of the NKPC. Thus I conclude that the NKPC fails to give a sound explanation of inflation …

The New Keynesian Phillips curve (NKPC) asserts that inflation depends on expectationsof real marginal costs, but … empirical research has shown that purely forward-looking versions of the model generate too little inflation persistence. In … this paper, we offer a resolution of the persistence problem. We hypothesize that inflation is highly persistent because of …

inflation. We introduce a small idiosyncratic component in firms’ marginal costs and let the economywide average marginal cost …

This paper shows how endogeneous inflation inertia is generated by a simple modificaton of the quadratic adjustment … cost structure faced by economic agents. We derive the pertinent inflation relationships based on purely nominal rigidities …

- although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly … asserted that, in the context of the new Phillips curve (NPC), inflation is a jump variable. We argue that this persistency … setting (in which real variables not only affect inflation, but are also influenced by it), standard wage-price staggering …

" - although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly … asserted that, in the context of the new Phillips curve (NPC), inflation is a jump variable. We argue that this "persistency … equilibrium setting (in which real variables not only affect inflation, but are also influenced by it), standard wage …

" - although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly … asserted that, in the context of the new Phillips curve (NPC), inflation is a jump variable. We argue that this "persistency … equilibrium setting (in which real variables not only affect inflation, but are also influenced by it), standard wage …

In this paper, I consider the policy implications of two alternative structural interpretations of observed inflation … specification allows for some degree of intrinsic persistence by way of a lagged inflation term in the NKPC. The second is a purely … specification, most of the observed inflation persistence is attributed to fluctuations in the underlying inflation trend, which are …

We review the main New Keynesian inflation equations that have arisen as a result of aggregation from individual firms …' price rigidities. We find that, on the whole, they cannot account for inflation persistence, a key feature of the empirical … dynamics of inflation, and with important policy implications. The only exception seems to be when price stickiness is combined …