Date: 2009
Type: Article
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
Retrieved from Cadmus, EUI Research Repository
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
ISSN: 0165-1765
