Premium
The Persistence of Inflation Versus That of Real Marginal Cost in the New Keynesian Model
Author(s) -
ROTEMBERG JULIO J.
Publication year - 2007
Publication title -
journal of money, credit and banking
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.763
H-Index - 108
eISSN - 1538-4616
pISSN - 0022-2879
DOI - 10.1111/j.0022-2879.2007.00010.x
Subject(s) - economics , inflation (cosmology) , keynesian economics , new keynesian economics , phillips curve , persistence (discontinuity) , output gap , marginal cost , econometrics , monetary policy , microeconomics , physics , theoretical physics , geology , geotechnical engineering
This note provides an example where the New Keynesian Phillips Curve leads inflation to be substantially more persistent than the output gap.