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I discuss the identifiability of a structural New Keynesian Phillips curve when it is embedded in a small scale dynamic stochastic general equilibrium model. Identification problems emerge because not all the structural parameters are recoverable from the semi-structural ones and because the...
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variable for Swedish inflation than the output gap. However, standard errors in the estimations are large and it is in fact … difficult to pin down a statistically significant relationship between either real marginal cost or the output gap and inflation …. -- Inflation ; New Keynesian Phillips curve ; Real marginal cost ; Small Open Economy ; GMM ; Full Information Maximum Likelihood …
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