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The Persistence of Inflation Versus That of Real Marginal Cost in the New Keynesian Model

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  • JULIO J. ROTEMBERG

Abstract

This note provides an example where the New Keynesian Phillips Curve leads inflation to be substantially more persistent than the output gap. Copyright 2007 The Ohio State University.

Suggested Citation

  • Julio J. Rotemberg, 2007. "The Persistence of Inflation Versus That of Real Marginal Cost in the New Keynesian Model," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(1), pages 237-239, February.
  • Handle: RePEc:mcb:jmoncb:v:39:y:2007:i:1:p:237-239
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    References listed on IDEAS

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    1. Jeff Fuhrer & George Moore, 1995. "Inflation Persistence," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 127-159.
    2. Fuhrer, Jeffrey C., 2010. "Inflation Persistence," Handbook of Monetary Economics, in: Benjamin M. Friedman & Michael Woodford (ed.), Handbook of Monetary Economics, edition 1, volume 3, chapter 9, pages 423-486, Elsevier.
    3. Roberts, John M, 1995. "New Keynesian Economics and the Phillips Curve," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(4), pages 975-984, November.
    4. Julio J. Rotemberg, 1982. "Monopolistic Price Adjustment and Aggregate Output," Review of Economic Studies, Oxford University Press, vol. 49(4), pages 517-531.
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    Cited by:

    1. Olivier Blanchard & Jordi Galí, 2007. "Real Wage Rigidities and the New Keynesian Model," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(s1), pages 35-65, February.

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