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Is the Hybrid New Keynesian Phillips Curve Stable? Evidence from Some Emerging Economies

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  • Kushal Banik Chowdhury

    (Economic Research Unit, Indian Statistical Institute
    Indian Statistical Institute, North-East Centre)

  • Nityananda Sarkar

    (Economic Research Unit, Indian Statistical Institute)

Abstract

This paper primarily examines whether the ‘hybrid new Keynesian Phillips curve’ (HNKPC) holds for four important emerging economics viz., Brazil, Russia, India and South Africa. This has been done after testing for the structural stability of this relationship. Econometric issues like the test of unit roots in presence of a structural break and estimation of output gap have also been done appropriately. Our findings suggest that the HNKPC is not stable for all the four countries. However, the analysis based on the two sub-periods thus formed clearly shows mixed evidence in respect of holding of this relationship.

Suggested Citation

  • Kushal Banik Chowdhury & Nityananda Sarkar, 2017. "Is the Hybrid New Keynesian Phillips Curve Stable? Evidence from Some Emerging Economies," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 15(3), pages 427-449, September.
  • Handle: RePEc:spr:jqecon:v:15:y:2017:i:3:d:10.1007_s40953-016-0059-y
    DOI: 10.1007/s40953-016-0059-y
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    4. Bhavesh Salunkhe & Anuradha Patnaik, 2019. "Inflation Dynamics and Monetary Policy in India: A New Keynesian Phillips Curve Perspective," South Asian Journal of Macroeconomics and Public Finance, , vol. 8(2), pages 144-179, December.

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