The New-Keynesian aggregate supply derives from micro-foundations an inflation-dynamics model very much like the … tradition in the monetary literature. Inflation is primarily affected by: (i) Economic slack; (ii) Expectations; (iii) Supply … shocks; and, (iv) Inflation persistence.This paper extends the New Keynesian aggregate supply relationship to include …

The New-Keynesian aggregate supply derives from micro-foundations an inflation-dynamics model very much like the … tradition in the monetary literature. Inflation is primarily affected by: (i) economic slack; (ii) expectations; (iii) supply … shocks; and (iv) inflation persistence. This paper extends the New Keynesian aggregate supply relationship to include also …

hybrid specification that includes both lagged and future inflation and then by examining whether the estimated coefficient … on future inflation is significantly larger than the one on lagged inflation. This article presents the evidence that … is irrelevant and expected future inflation is the major determinant of inflation — arise if the hybrid specification is …