TITLE

Estimates of the Sticky-Information Phillips Curve for the United States

AUTHOR(S)
KHAN, HASMAT; ZHENHUA ZHU
PUB. DATE
February 2006
SOURCE
Journal of Money, Credit & Banking (Ohio State University Press);Feb2006, Vol. 38 Issue 1, p195
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Mankiw and Reis (2002) have proposed a 'sticky-information'-based Phillips curve (SIPC) to address some of the concerns with the 'sticky-price'-based new Keynesian Phillips curve. In this paper, we present a methodology to empirically implement the SIPC and estimate its key structural parameter—the degree of information stickiness—for the United States. Using this methodology, we estimate average durations of information stickiness that range from three quarters (on the low side) to over seven quarters (on the high side).
ACCESSION #
19513093

 

Related Articles

  • Information Frictions and Monetary Policy. Matějka, Filip // Economic Studies & Analyses / Acta VSFS;2012, Vol. 6 Issue 1, p7 

    Real effects of monetary policy depend crucially on the nature of nominal rigidities. These rigidities are typically modelled as sticky prices with explicit assumptions on either frequency of price adjustments (Calvo-style models) or on the cost of adjustment (menu cost models). However, recent...

  • Inflation Dynamics in Romania - a New Keynesian Perspective. Ciurilă, Nicoleta; Muraraşu, Bogdan // European Research Studies;2008, Vol. 11 Issue 4, p31 

    The objective of this paper is to identify the main factors which drive inflation in Romania: inflation persistence, inflation expectations and real economy variables. We estimate a reduced form hybrid New Keynesian Phillips Curve in order to determine the degree of inertia and the impact of...

  • Near-Rational Wage and Price Setting and the Long-Run Phillips Curve. Akerlof, George A.; Dickens, William T.; Perry, George L. // Brookings Papers on Economic Activity;2000, Issue 1, p1 

    The article focuses on near-rational wage and price setting and the long-run Phillips curve. In his presidential address to the American Economic Association, Milton Friedman asserted that in the long run the Phillips curve was vertical at a natural rate of unemployment that could be identified...

  • Aggregate Supply, Investment in Capacity, and Potential Output. Razin, Assaf // Journal of Money, Credit & Banking (Ohio State University Press);Feb2005, Vol. 37 Issue 1, p179 

    The New-Keynesian aggregate supply derives from micro-foundations, an inflation-dynamics model very much like the tradition in the monetary literature. Inflation is primarily affected by: (1) economic slack, (2) expectations, (3) supply shocks, and (4) the persistence of inflation. This paper...

  • A MULTIMARKET APPROACH FOR ESTIMATING A NEW KEYNESIAN PHILLIPS CURVE. Tena, J. D.; Dresdner, Jorge; Araya, Iv�n // Revista de Econom�a Aplicada;2012, Vol. 20 Issue 58, p49 

    We propose a new approach for estimating a "hybrid" New Keynesian Phillips Curve (NKPC) that includes demand pressures coming from disequilibrium relations in three different markets: (1) monetary and financial, (2) international, and (3) labour. Econometric tests based on Chilean data indicate...

  • PHILLIPS EÄžRÄ°SÄ° : ENFLASYON-Ä°ÅžSÄ°ZLÄ°K DEĞİŞ-TOKUÅžU TEORÄ°K BÄ°R Ä°NCELEME. AKKUŞ, G. Emel // Journal of the Faculty of Economics / Iktisat Fakültesi Mecmuas;Jul2012, Vol. 62 Issue 2, p99 

    The Inflation-unemployment trade-off shown by the Phillips curve being originally the product of an empirical study of A.W.H. Phillips in 1958, is accepted as one of the essential principles of economics. Today, there is a broad consensus among economists on the fact that there is not a...

  • The New Keynesian Phillips Curve in an Inflation Targeting Country: The Case of Turkey. Gozgor, Giray // International Journal of Economic Sciences & Applied Research;Apr2013, Vol. 6 Issue 1, p7 

    The possible short-run trade-off between the inflation (gap) and the output (gap) remains a critical policy issue for any emerging economy; particularly when an implicit or an explicit inflation targeting monetary policy is considered. The New Keynesian Phillips Curve (NKPC) has recently set up...

  • Modelling inflation in China—A regional perspective Mehrotra, Aaron; Peltonen, Tuomas; Santos Rivera, Alvaro // China Economic Review (1043951X);Jun2010, Vol. 21 Issue 2, p237 

    Abstract: We model provincial inflation in China during the reform period. In particular, we are interested in the ability of the hybrid New Keynesian Phillips Curve (NKPC) to capture the inflation process at the provincial level. The study highlights differences in inflation formation and shows...

  • Capacity constraints, price adjustment, and monetary policy. Macklem, Tiff // Bank of Canada Review;Spring97, p39 

    Examines the short-run relationship between economic activity and inflation. Shape of the short-run output-inflation relationship; Three policy implications for monetary policy if the short-run Phillips curve is non-linear.

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics