Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83947
Authors: 
Páez-Farrell, Juan
Year of Publication: 
2006
Series/Report no.: 
Cardiff Economics Working Papers E2006/18
Abstract: 
This paper examines the relationship between cyclical output and inflation in models commonly used for monetary policy analysis. This includes models that incorporate the New Keynesian, Fuhrer-Moore and backward-looking Phillips curves. The main finding is that these models imply a strong negative relationship between inflation and output, a result that is at odds with the data. The fact that New Keynesian models yield counterfactual implications is not new; the novelty of the paper lies in the fact that the finding extends to the other variants, such as the backward-looking Phillips Curve, which has been put forward as displaying superior dynamics.
Subjects: 
nominal rigidities
monetary policy
Phillips Curve
Output
Inflation
Correlation
JEL: 
E20
E31
E32
E52
E61
Document Type: 
Working Paper

Files in This Item:
File
Size





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