IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-80076-2_3.html
   My bibliography  Save this book chapter

Assessing the New Keynesian Phillips Curve Under Competing Expectation Hypotheses

In: Advances in Monetary Policy and Macroeconomics

Author

Listed:
  • Olivier Musy
  • Sébastien Pommier

Abstract

The current research on monetary business cycles introduces sticky prices as a source of monetary non-neutrality, but assumes otherwise that agents adopt an optimizing behaviour and have rational expectations. The main characteristic of the resulting inflation specification (known as the ‘New Keynesian Phillips Curve’, hereafter NKPC) is the dependence of current inflation on expected inflation and a measure of the output gap: π t = β E t π t + 1 + α y t ]] π t = α ∑ i = 0 ∞ β i y t + i ]] π t = γ ( L ) π t − 1 + δ ( L ) y t + u t ]]

Suggested Citation

  • Olivier Musy & Sébastien Pommier, 2007. "Assessing the New Keynesian Phillips Curve Under Competing Expectation Hypotheses," Palgrave Macmillan Books, in: Philip Arestis & Gennaro Zezza (ed.), Advances in Monetary Policy and Macroeconomics, chapter 3, pages 28-49, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-80076-2_3
    DOI: 10.1057/9780230800762_3
    as

    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.

    Other versions of this item:

    Corrections

    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:pal:palchp:978-0-230-80076-2_3. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.