A New Keynesian Phillips Curve With Staggered Contracts and Indexation

Olivier Musy

Economics Bulletin, 2021, vol. 41, issue 1, 60-65

Abstract: We develop a New Keynesian Phillips curve based on a combination of staggered price contracts and indexation to past inflation. This Phillips curve links current inflation dynamics to past inflation with a positive weight, as well as current and lagged expectations of inflation and output, giving a possible alternative explanation for recent empirical findings on the role of expectations in the determination of inflation

Keywords: Inflation Dynamics; Staggered contracts; Price Indexation; Sticky Prices; New Keynesian Phillips Curve; Lagged Expectations. (search for similar items in EconPapers)
JEL-codes: E3 E5 (search for similar items in EconPapers)
Date: 2021-03-10
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Working Paper: A New Keynesian Phillips Curve With Staggered Contracts and Indexation (2020)
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