the NKPC provides useful insights into the nature of inflation dynamics in mainland China as well as useful insights for …The New Keynesian Phillips curve (NKPC) posits the dynamics of inflation as forward looking and related to marginal … costs. In this paper we examine the empirical relevance of the NKPC for mainland China. The empirical results indicate that …

Keynesian assumption ofprice rigidity and show that the response of inflation to the output gap tends to be significant only if … the inflation rate tends to be relatively high and exceeds a certain threshold. For a low inflation rate, the price … during which the elasticity of inflation rate to an excess demand has become highly important and the inflation rate …

output and real-rate gaps can be represented in a parsimonious and practical manner using the theory of anelasticity that …

The long-run relation between growth and inflation has not yet been studied in the context of nominal price and wage … integrate staggered price- and wage-setting into an endogenous growth framework. In this setting, growth and inflation are … linked via the incentive to innovate. For standard calibrations, the linkage is strong: as trend inflation shifts from -5 to …

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 …

when stock prices and inflation move in opposite directions. Therefore, this New Keynesian Q (NKQ) theory can rationalize …I show that when prices are sticky the Q theory of firms' behavior predicts that market-book ratios increase as … inflation expectations diminish, holding investment fixed. In the data stock prices and investment correlate poorly precisely …

tolerance range policies, characterized by a stronger reaction of the centralbank to inflation when inflation lies outside the … strong reaction, when inflation is far fromthe target, is required to compensate a moderately lower reaction within tolerance …

A number of central banks in advanced countries use ranges, or bands, around their inflation target to formulate their … tolerance range policies, characterized by a stronger reaction of the central bank to inflation when inflation lies outside the … unfavorable: a very strong reaction, when inflation is far from the target, is required to compensate for a moderately lower …

Is the observed correlation between current and lagged inflation a function of backward-looking inflation expectations …, or do the lags in inflation regressions merely proxy for rational forward-looking expectations, as in the new … "hybrid" specifications for inflation that allow for effects of lagged and future inflation. We show that these tests of …