The New Keynesian Phillips Curve: Some Counterfactual Evidence

Juan Paez-Farrell ()

Macroeconomics from EconWPA

Abstract: New Keynesian models of the business cycle have become the new paradigm of monetary economics, often used for policy analysis. This paper shows that this class of models fail in one crucial respect: they imply a strong negative contemporaneous correlation between inflation and output. Furthermore, this result is robust to parameter values and specification of the inflation equation.

Keywords: New Keynesian Models; Output Inflation (search for similar items in EconPapers)
JEL-codes: E20 E31 E32 E52 E61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-mac and nep-mon
Date: 2003-12-05
Note: Type of Document - ; pages: 16
View list of references View citations in EconPapers

Downloads: (external link)
http://129.3.20.41/eps/mac/papers/0312/0312003.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpma:0312003

Access Statistics for this paper

More papers in Macroeconomics from EconWPA
Series data maintained by EconWPA ().