1995/11/01 by John M. Roberts · 4 citations
Economics, Econometrics and Finance · #Monetary Policy and Economic Impact #Economic Theory and Policy #Economic theories and models #Phillips curve #Economics #New Keynesian economics #Keynesian economics #Econometrics #Measure (data warehouse) #Econometric model #Mathematical economics #Monetary policy #Computer science
paper · doi:10.2307/2077783
openalex publication_date 1995/11/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/05
Models with sticky prices are an important part of New Keynesian economics. The author shows that several of the New Keynesian models imply a formulation that is similar to the expectations-augmented Phillips curve of Milton Friedman and Edmund Phelps. He then presents new estimates of the New Keynesian Phillips curve. The author uses two proxies for price expectations: survey-based measures and an econometric-based measure originally developed by Bennett McCallum (1976). Overall, the results are consistent with the model but the survey-based results are more precise, suggesting that the surveys may be better measures of actual expectations. Copyright 1995 by Ohio State University Press.