Analysing inflation dynamics in the Philippines using the new Keynesian Phililips curve

Faith Christian Cacnio

Philippine Review of Economics, 2013, vol. 50, issue 2, 53-82

Abstract: This study analyses short-run inflation dynamics in the Philippines using the new Keynesian Phillips curve (nkpc) framework. The nkpc highlights the inclusion of microbased behavioral models for economic agents (i.e., households and firms) in deriving the relationship between inflation and economic activity. A key finding of this paper is the declining sensitivity of inflation to changes in the real variables of the economy. Various reasons have been cited to explain this phenomenon, which is often referred to in the literature as the flattening of the Phillips curve. For the Philippines, the adoption of inflation targeting and increased trade openness contributed to the flattening of the Phillips curve.

Keywords: inflation dynamics; New Keynesian Phillips Curve; flattening Phillips Curve (search for similar items in EconPapers)
JEL-codes: E31 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://pre.econ.upd.edu.ph/index.php/pre/article/view/898/798 (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: https://EconPapers.repec.org/RePEc:phs:prejrn:v:50:y:2013:i:2:p:53-82

Access Statistics for this article

More articles in Philippine Review of Economics from University of the Philippines School of Economics and Philippine Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by HR Rabe ().