Economics, Econometrics and Finance
4 years ago

New method for estimating inflation could revolutionize economic forecasting.

Journal of money credit and banking
Estimating the New Keynesian Phillips Curve: A Vertical Production Chain Approach
Adam Hale Shapiro

Paper Summary

Related papers

Economics, Econometrics and Finance
3 years ago

Real marginal costs drive inflation in Hungary, impacting economic stability.

Macroeconomic Analysis
Infrastructure Impact
Economic Growth
2 views
Economics, Econometrics and Finance
4 years ago

Inflation Dynamics Reveal Surprising Insights, Challenging Economic Assumptions

Monetary Models
Macroeconomic Analysis
Macroeconomic Trends
2 views
Economics, Econometrics and Finance
4 years ago

Monetary Policy Overhaul Needed to Tackle Inflation and Boost Economy

Macroeconomic Trends
Monetary Models
Macroeconomic Analysis
2 views

The article introduces a new way to estimate the New Keynesian Phillips Curve by using a different measure for real marginal cost and a new set of instruments based on the production chain. By focusing on input prices instead of wages, the new measure provides a stronger fit to the model. The instruments based on the production chain are found to be more valid and relevant for the model.