The Analytics of New Keynesian Phillips Curves
Institut für Volkswirtschaftslehre der Universität Augsburg Beitrag Volkswirtschaftliche Diskussionsreihe No. 313
Posted: 30 Mar 2011
Date Written: November 20, 2011
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, E32
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