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 …

of inflation. Recent empirical work on this link provides support for the models. However, that support is weakened by …

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 …

costs driven by changes in factor prices than to increases in marginal cost precipitated by expansions in output. We explore …