IDEAS home Printed from
   My bibliography  Save this article

New Evidence On The Output-Inflation Trade-Off From Asean-5 Economies


  • Venus Khim-Sen Liew
  • Kian-Ping Lim
  • Chin-Hong Puah


The Phillips curve trade-off between output and inflation has for long been a debatable issue in the study of macroeconomics. Both new classical and new Keynesian approaches give contending views in explaining the determinants of the trade-off. The main aim of this study is to investigate empirically whether the output-inflation trade-off in the five major ASEAN economies is inversely related to the variance of inflation (in new classical view) or to the average rate of inflation (in new Keynesian view). Using the simplified version of BMR (1988) and ARY (1988) models proposed by Asai (1999), the authors have found evidence supporting the new Keynesian theory for all the five ASEAN economies under the study. Unlike previous studies, diagnostic tests are conducted to ensure that the model s residuals are uncorrelated serially and are free from any heteroscedasticity effects since the interpretations of these two models are based solely on the t-statistics of the estimated coefficients.

Suggested Citation

  • Venus Khim-Sen Liew & Kian-Ping Lim & Chin-Hong Puah, 2006. "New Evidence On The Output-Inflation Trade-Off From Asean-5 Economies," The IUP Journal of Applied Economics, IUP Publications, vol. 0(2), pages 16-25, March.
  • Handle: RePEc:icf:icfjae:v:05:y:2006:i:2:p:16-25

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icf:icfjae:v:05:y:2006:i:2:p:16-25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.