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The new Keynesian economics and the output-inflation trade-off

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  • George Katsimbris
  • Stephen Miller

Abstract

This letter reconsiders the empirical tests of the new Keynesian and new classical models performed by Ball Mankiw and Romer and Akerlof, Rose and Yellen. The original tests conform basically to cross-section analysis; we develop both time-series and pooled cross-section, time-series tests of these issues, using the methodology and results of Katsimbris. Our tests find at best weak support for either the new Keynesian or the new classical hypotheses.

Suggested Citation

  • George Katsimbris & Stephen Miller, 1996. "The new Keynesian economics and the output-inflation trade-off," Applied Economics Letters, Taylor & Francis Journals, vol. 3(9), pages 599-602.
    • Handle: RePEc:taf:apeclt:v:3:y:1996:i:9:p:599-602
    DOI: 10.1080/135048596356041
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    References listed on IDEAS

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    1. Froyen, Richard T & Waud, Roger N, 1985. "Demand Variability, Supply Shocks and the Output-Inflation Tradeoff," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 9-15, February.
    2. Koskela, Erkki & Viren, Matti, 1980. "New international evidence on output-inflation tradeoffs : A note," Economics Letters, Elsevier, vol. 6(3), pages 233-239.
    3. Alberro, Jose, 1981. "The Lucas hypothesis on the Phillips Curve : Further international evidence," Journal of Monetary Economics, Elsevier, vol. 7(2), pages 239-250.
    4. Hercowitz, Zvi, 1983. "Anticipated Inflation, the Frequency of Transactions, and the Slope of the Phillips Curve," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 15(2), pages 139-154, May.
    5. DeFina, Robert H, 1991. "International Evidence on a New Keynesian Theory of the Output-Inflation Trade-Off," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 23(3), pages 410-422, August.
    6. Attfield, Clifford L F & Duck, Nigel W, 1983. "The Influence of Unanticipated Money Growth on Real Output: Some Cross-Country Estimates," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 15(4), pages 442-454, November.
    7. Katsimbris, George M., 1990. ""Input-inflation trade-off in industrial and developing countries": A comment and additional evidence," Journal of Macroeconomics, Elsevier, vol. 12(3), pages 483-499.
    8. Jung, W. S., 1985. "Output-inflation tradeoffs in industrial and developing countries," Journal of Macroeconomics, Elsevier, vol. 7(1), pages 101-113.
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    Cited by:

    1. Zacharias Bragoudakis & Stelios Panagiotou, 2010. "Determinants of the receipts from shipping services: the case of Greece," Economic Bulletin, Bank of Greece, issue 34, pages 41-55, September.
    2. Rongrong Sun, 2014. "Nominal rigidity and some new evidence on the New Keynesian theory of the output-inflation tradeoff," International Economics and Economic Policy, Springer, vol. 11(4), pages 575-597, December.
    3. Heather Gibson & Hiona Balfoussia, 2010. "The impact of nominal and real uncertainty on macroeconomic aggregates in Greece," Economic Bulletin, Bank of Greece, issue 34, pages 57-71, September.
    4. Theodoros Mitrakos & Panos Tsaklogou & Ioannis Cholezas, 2010. "Determinants of the wage rates in Greece with an emphasis on the wages of tertiary education graduates," Economic Bulletin, Bank of Greece, issue 34, pages 7-40, September.

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