The Analytics of New Keynesian Phillips Curves
University of Augsburg - Faculty of Business and Economics
November 20, 2011
Institut für Volkswirtschaftslehre der Universität Augsburg Beitrag Volkswirtschaftliche Diskussionsreihe No. 313
This paper introduces the reader into the apparatus behind the popular New Keynesian Phillips (NKPC) curve. It derives several log-linear versions of this curve and recursive formulations of the Calvo-Yun price staggering model that is behind this curve. These formulations can be used for higher order approximations of the NKPC or for implementations that use other non-linear solution techniques, as, e.g., projection methods.
Keywords: New Keynesian Phillips Curve, Price Staggering, Solution of DSGE Models
JEL Classification: C63, E31, E32working papers series
Date posted: March 30, 2011
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