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 -