The New Keynesian Phillips Curve: Some Counterfactual Evidence

Juan Paez-Farrell

Macroeconomics from University Library of Munich, Germany

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)
Pages: 16 pages
Date: 2003-12-05
New Economics Papers: this item is included in nep-dge, nep-mac and nep-mon
Note: Type of Document - ; pages: 16
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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

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