Is the New Keynesian Phillips Curve Flat?
Title: Is the New Keynesian Phillips Curve Flat?
Citation: Economics Letters, 2009, 103, pp. 39-41
This paper provides Monte Carlo evidence that GMM estimates of the New Keynesian Phillips curve are biased towards finding too much price rigidity if cost-push shocks are auto-correlated. This result may reconcile GMM estimates with the microevidence on price rigidities.
Type of Access: openAccess
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