New Keynesian Phillips Curve for Romania

Corina Saman and Bianca Pauna

Journal for Economic Forecasting, 2013, issue 2, 159-171

Abstract: The paper aims to estimate the New Keynesian Phillips curve in the case of Romanian economy. The empirical model estimates simultaneously the potential output and the output gap; the natural rate of unemployment and the cyclical unemployment as an Okun Law type relationship; and the New Phillips curve linking inflation to output gap. We estimated two models that differed only in the assumption regarding the speed of adjustment of the cyclical unemployment to changes in output. The estimation results proved that the Phillips curve is not very different. It can be observed that the forwardlooking component of the NKPC is only marginally larger than the backward looking component in both specifications.

Keywords: New Keynesian Phillips curve; Inflation; Potential output (search for similar items in EconPapers)
JEL-codes: C11 C22 E31 E32 E50 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:rjr:romjef:v::y:2013:i:2:p:159-171

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