A New Keynesian Phillips Curve With Staggered Contracts and Indexation

Olivier Musy

MPRA Paper from University Library of Munich, Germany

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; Sticky Expectations (search for similar items in EconPapers)
JEL-codes: E3 E31 E5 (search for similar items in EconPapers)
Date: 2020-12-28
New Economics Papers: this item is included in nep-cwa, nep-mac and nep-mon
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Journal Article: A New Keynesian Phillips Curve With Staggered Contracts and Indexation (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:105012

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