Is the New Keynesian Phillips Curve Flat?
Economics Letters, 2009, 103, pp. 39-41
STÖLTING, Sarah, KUESTER, Keith, MÜLLER, Gernot J., Is the New Keynesian Phillips Curve Flat?, Economics Letters, 2009, 103, pp. 39-41 - https://hdl.handle.net/1814/12193
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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.
Cadmus permanent link: https://hdl.handle.net/1814/12193
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