Attey, J. A.; Vries, C. G. De - In: Competition and Regulation in Network Industries LVI (2011) 4, pp. 394-405
Textbook NK macro models have expected future inflation in the AS and IS schedules. Empirical evidence suggests that … lagged inflation has higher relevance for aggregate supply. We derive an AS curve with lagged inflation expectations assuming … that the FED-based hybrid objective and ECB inflation objective imply the same interest rate targeting rule. Our AS curve …