Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/210048 
Year of Publication: 
2013
Series/Report no.: 
Working Paper No. 2013/25
Publisher: 
Norges Bank, Oslo
Abstract: 
I provide a generalization of Calvo price setting, to include non-overlapping contracts as a special case and embed this in a small DSGE model. The resulting Generalized Phillips Curve (GPC) nests New-Keynesian and Neoclassical versions. I linearize the model around a potentially non-zero trend inflation rate, and estimate it on US data using Bayesian methods, allowing for Markov switching in the variances of structural shocks. I find that the Phillips curve is 100% New Keynesian. There is no evidence of either forward or backward indexation. I illustrate that trend inflation affects the estimation of the Phillips curve.
Subjects: 
Phillips curve
neoclassical
indexation
regime-switching
trend inflation
JEL: 
E13
E31
Persistent Identifier of the first edition: 
ISBN: 
978-82-7553-782-7
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
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