Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/90762
Authors: 
Nymoen, Ragnar
Swensen, Anders Rygh
Tveter, Eivind
Year of Publication: 
2011
Series/Report no.: 
Memorandum, Department of Economics, University of Oslo 23/2011
Abstract: 
We present a framework for interpretation of the empirical results of New Keynesian models of inflation dynamics. Both the rational expectations solution of the structural New Keynesian Phillips curve, NKPC, and the reduced form VAR analysis of the multivariate time series properties give insight about the joint implications of the evidence in the NKPC literature. For example, we show that the unit-root form of non-stationary may be implied for inflation even though the econometric model initally assumed stationarity. We point out and suggest a correction to an error in the literature regarding the existence or not of a rational expectations solution in the case of homogeneity and forward-dominance.
Subjects: 
New Keynesian Phillips Curve
forward-looking price setting
rational expectations
VAR model
JEL: 
B41
C22
E31
E52
Document Type: 
Working Paper

Files in This Item:
File
Size
273.16 kB





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