Munich Personal RePEc Archive

A New Keynesian Phillips Curve With Staggered Contracts and Indexation

Musy, Olivier (2020): A New Keynesian Phillips Curve With Staggered Contracts and Indexation.

[img]
Preview
PDF
MPRA_paper_105012.pdf

Download (199kB) | Preview

Abstract

We develop a New Keynesian Phillips curve based on a combination of staggered price contracts and indexation to past inflation. This Phillips curve links current inflation dynamics to past inflation with a positive weight, as well as current and lagged expectations of inflation and output, giving a possible alternative explanation for recent empirical findings on the role of expectations in the determination of inflation.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.