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A Small-Sample Study of the New-Keynesian Macro Model

Listed author(s):
  • Seonghoon Cho

    ()

    (Korea Development Institute)

  • Antonio Moreno

    ()

    (School of Economics and Business Administration, University of Navarra)

This paper presents a small-sample study of the threeequation- three variable New-Keynesian macro model. While the point estimates imply that the Fed has been stabilizing inflation fluctuations since 1980, our econometric analysis suggests considerable uncertainty regarding the stance of the Fed against inflation. We show that, if we add first order autocorrelation to the error terms of the New- Keynesian model, this is only marginally rejected.

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File URL: http://www.unav.edu/documents/10174/6546776/1132756472_wp0305.pdf
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Paper provided by School of Economics and Business Administration, University of Navarra in its series Faculty Working Papers with number 03/05.

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Length: 38 pages
Date of creation: 01 Feb 2005
Publication status: Forthcoming, Journal of Money, Credit and Banking
Handle: RePEc:una:unccee:wp0305
Contact details of provider: Web page: http://www.unav.edu/web/facultad-de-ciencias-economicas-y-empresariales

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