TY  - JOUR
TI  - Inflation Dynamics: A Structural Econometric Analysis
T2  - Journal of Monetary Economics
IS  - 2
KW  - cost channel
KW  - inflation
KW  - Phillips curve
AB  - We develop and estimate a structural model of inflation that allows 
for a fraction of firms that use a backward-looking rule to set 
prices. The model nests the purely forward-looking New Keynesian 
Phillips curve as a particular case. We use measures of marginal cost 
as the relevant determinant of inflation, as the theory suggests, 
instead of an ad hoc output gap. Real marginal costs are a 
significant and quantitatively important determinant of inflation. 
Backward-looking price setting, while statistically significant, is 
not quantitatively important. Thus, we conclude that the New 
Keynesian Phillips curve provides a good first approximation to the 
dynamics of inflation. 
AU  - Gali, Jordi
AU  - Gertler, Mark
UR  - http://ecsocman.hse.ru/text/19081530/
PY  - 1999
SP  - 195-222
M2  - 195
VL  - 44
SN  - 
N1  - 
LA  - EN
CY  - 
PB  - 
M3  - 
LB  - 
VL  - 
ER  -