This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
An Anatomy of the Phillips Curve Author info | Abstract | Publisher info | Download info | Related research | Statistics Marika Karanassou () (Queen Mary, University of London)
Dennis J. Snower (Birkbeck College)
Additional information is available for the following
registered author(s):
The paper examines how the long-run inflation-unemployment tradeoff depends on the degree to which wage-price decisions are backward- versus forward-looking. When economic agents, facing time-contingent, staggered nominal contracts, have a positive rate of time preference, the current wage and price levels depend more heavily on past variables (e.g. past wages and prices) than on future variables. Consequently, the long-run Phillips curve becomes downward-sloping and, indeed, quite flat for plausible parameter values. This paper provides an intuitive account of how this long-run Phillips curve arises.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Queen Mary, University of London, Department of Economics in its series Working Papers with number
478.
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Length:
Date of creation: Dec 2002Date of revision:
Handle: RePEc:qmw:qmwecw:wp478Contact details of provider: Postal: London E1 4NS Phone: +44 (0) 20 7882 5096 Fax: +44 (0) 20 8983 3580 Web page: http://www.econ.qmul.ac.uk More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Nick Vriend).
Keywords: Inflation-unemployment tradeoff Wage-price staggering Monetary policy Forward- and backward-looking wage-price behavior Traditional and New Phillips curve Other versions of this item:
Find related papers by JEL classification: E2 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
John B. Taylor, 1980.
"Aggregate Dynamics and Staggered Contracts ,"
NBER Reprints
0126, National Bureau of Economic Research, Inc.
Other versions: Graham, Liam & Snower, Dennis J., 2002.
"The Return of the Long-Run Phillips Curve ,"
IZA Discussion Papers
646, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions: Richard Clarida & Jordi Gali & Mark Gertler, 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
Journal of Economic Literature ,
American Economic Association, vol. 37(4), pages 1661-1707, December.
[Downloadable!] (restricted)
Other versions:
Clarida, Richard & Galí, Jordi & Gertler, Mark, 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
CEPR Discussion Papers
2139, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Clarida, R. & Gali, J. & Gertler, M., 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
Working Papers
99-13, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!] Richard Clarida & Jordi Galí & Mark Gertler, 1997.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
Economics Working Papers
356, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 1999.
[Downloadable!] Richard Clarida & Jordi Gali & Mark Gertler, 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
NBER Working Papers
7147, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Mankiw, N Gregory, 2001.
"The Inexorable and Mysterious Tradeoff between Inflation and Unemployment ,"
Economic Journal ,
Royal Economic Society, vol. 111(471), pages C45-61, May.
[Downloadable!] (restricted)
Other versions: Taylor, John B, 1979.
"Staggered Wage Setting in a Macro Model ,"
American Economic Review ,
American Economic Association, vol. 69(2), pages 108-13, May.
[Downloadable!] (restricted)
Gordon, Robert J, 1997.
"The Time-Varying NAIRU and Its Implications for Economic Policy ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 11(1), pages 11-32, Winter.
[Downloadable!] (restricted)
Other versions: Ascari, Guido & Rankin, Neil, 2002.
"Staggered wages and output dynamics under disinflation ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 26(4), pages 653-680, April.
[Downloadable!] (restricted)
Other versions: Bernanke, B. & Gertler, M. & Gilchrist, S., 1998.
"The Financial Accelerator in a Quantitative Business Cycle Framework ,"
Working Papers
98-03, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!]
Other versions:
Ben Bernanke & Mark Gertler & Simon Gilchrist, 1998.
"The Financial Accelerator in a Quantitative Business Cycle Framework ,"
NBER Working Papers
6455, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Bernanke, Ben S. & Gertler, Mark & Gilchrist, Simon, 1999.
"The financial accelerator in a quantitative business cycle framework ,"
Handbook of Macroeconomics ,
in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 21, pages 1341-1393
Elsevier.
[Downloadable!] (restricted) Roberts, John M, 1995.
"New Keynesian Economics and the Phillips Curve ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 27(4), pages 975-84, November.
[Downloadable!] (restricted)
Rotemberg, Julio J, 1982.
"Monopolistic Price Adjustment and Aggregate Output ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 49(4), pages 517-31, October.
[Downloadable!] (restricted)
John B. Taylor, 1980.
"Output and Price Stability: An International Comparison ,"
NBER Reprints
0113, National Bureau of Economic Research, Inc.
Other versions: Ascari, Guido, 2000.
"Optimising Agents, Staggered Wages and Persistence in the Real Effects of Money Shocks ,"
Economic Journal ,
Royal Economic Society, vol. 110(465), pages 664-86, July.
[Downloadable!] (restricted)
Other versions: Marvin Goodfriend & Robert G. King, 1998.
"The new neoclassical synthesis and the role of monetary policy ,"
Working Paper
98-05, Federal Reserve Bank of Richmond.
[Downloadable!]
Jordi Gali, 2002.
"New Perspectives on Monetary Policy, Inflation, and the Business Cycle ,"
NBER Working Papers
8767, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Calvo, Guillermo A., 1983.
"Staggered prices in a utility-maximizing framework ,"
Journal of Monetary Economics ,
Elsevier, vol. 12(3), pages 383-398, September.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Fitzenberger, Bernd & Franz, Wolfgang & Bode, Oliver, 2007.
"The Phillips Curve and NAIRU Revisited: New Estimates for Germany ,"
ZEW Discussion Papers
07-070, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
[Downloadable!]
Christian Conrad & Menelaos Karanasos, 2005.
"Dual Long Memory in Inflation Dynamics across Countries of the Euro Area and the Link between Inflation Uncertainty and Macroeconomic Performance ,"
Studies in Nonlinear Dynamics & Econometrics ,
Berkeley Electronic Press, vol. 9(4), pages 1147-1147.
[Downloadable!] (restricted)
Bernd Fitzenberger & Wolfgang Franz & Oliver Bode, 2007.
"The Phillips Curve and NAIRU Revisited: New Estimates for Germany ,"
Kiel Working Papers
1344, Kiel Institute for the World Economy.
[Downloadable!]
Franz, Wolfgang, 2003.
"Will the (German) NAIRU Please Stand up? ,"
ZEW Discussion Papers
03-35, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
[Downloadable!]
Access and
download statistics Did you know? IDEAS is not the only service displaying RePEc data. Choose on RePEc which service fits your needs best.
This page was last updated on 2008-10-30.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .