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Sticky information Phillips curves: European evidence

Author

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  • Slacalek, Jiri
  • Döpke, Jörg
  • Dovern, Jonas
  • Fritsche, Ulrich

Abstract

We estimate the sticky information Phillips curve model of Mankiw and Reis (2002) using survey expectations of professional forecasters from four major European economies. Our estimates imply that inflation expectations in France, Germany and the United Kingdom are updated about once a year, in Italy about once each six months. JEL Classification: E62, H20, H50, H62

Suggested Citation

  • Slacalek, Jiri & Döpke, Jörg & Dovern, Jonas & Fritsche, Ulrich, 2008. "Sticky information Phillips curves: European evidence," Working Paper Series 930, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:2008930
    Note: 1111765
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    References listed on IDEAS

    as
    1. Korenok, Oleg, 2008. "Empirical comparison of sticky price and sticky information models," Journal of Macroeconomics, Elsevier, vol. 30(3), pages 906-927, September.
    2. Reis, Ricardo, 2006. "Inattentive consumers," Journal of Monetary Economics, Elsevier, vol. 53(8), pages 1761-1800, November.
    3. Michael T. Kiley, 2007. "A Quantitative Comparison of Sticky-Price and Sticky-Information Models of Price Setting," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(s1), pages 101-125, February.
    4. N. Gregory Mankiw & Ricardo Reis, 2002. "Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1295-1328.
    5. Slacalek, Jirka & Fritsche, Ulrich & Dovern, Jonas & Döpke, Jörg, 2005. "European inflation expectations dynamics," Discussion Paper Series 1: Economic Studies 2005,37, Deutsche Bundesbank.
    6. Laurence Ball & David Romer, 1990. "Real Rigidities and the Non-Neutrality of Money," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(2), pages 183-203.
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    13. Doepke Joerg & Dovern Jonas & Fritsche Ulrich & Slacalek Jiri, 2008. "The Dynamics of European Inflation Expectations," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-23, March.
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    More about this item

    Keywords

    inflation expectations; inflation persistence; Phillips curve; sticky information;
    All these keywords.

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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