Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278480 
Year of Publication: 
2023
Series/Report no.: 
ECB Working Paper No. 2804
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
In sticky price models, the slope of the Phillips curve depends positively on the probability of price adjustment. I use a series for the empirical frequency of price adjustment to test this implication. I find some evidence that the Phillips curve slope depends positively on the repricing rate. My results support the implication from New Keynesian theory with Calvo pricing that the Phillips curve slope is a convex function of the frequency of price adjustment. However, at all observed values of the frequency of price adjustment, the empirical Phillips curve relation is much flatter than the New Keynesian Phillips Curve at standard parameter values would imply.
Subjects: 
Inflation
Phillips curve
price setting
JEL: 
C22
E31
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-6067-0
Document Type: 
Working Paper

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