Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/57818 
Year of Publication: 
2011
Series/Report no.: 
Arbeiten aus dem Osteuropa-Institut Regensburg No. 292
Publisher: 
Osteuropa-Institut Regensburg, Regensburg
Abstract: 
The New Keynesian Phillips Curve has become an important part of modern monetary policy models. It describes the relationship between inflation and real marginal cost, which is derived from micro-founded models with rational expectations, sticky prices, and forward and backward looking behaviour. This answers the previous critique of the Phillips Curve. We estimate several specifications of the New Keynesian Phillips Curve for the Czech Republic between 1996 and 2009. We show that the GMM suffers under the problem of weak instruments leading to biased estimates. In turn, the FIML is robust and yields significant estimates of structural parameters implying a strong forward looking behaviour.
Subjects: 
inflation
New Keynesian Phillips Curve
marginal costs
output gap
real unit labour costs.
JEL: 
E31
E52
C32
ISBN: 
978-3-938980-42-2
Document Type: 
Working Paper

Files in This Item:
File
Size
782.84 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.