Mazumder, Sandeep (contributor) - 2008
sticky-price version of the New Keynesian Phillips Curve does a good job of approximating US inflation dynamics. However … countercyclical whereas theory predicts marginal cost should be procyclical, and it employs a counterfactual assumption about the … to the entire underlying model of the NKPC. Thus I conclude that the NKPC fails to give a sound explanation of inflation …