Stochastic equilibrium, the Phillips curve and Keynesian economics
I uncover serious problems with the benchmark New Keynesian Phillips curve linearized around its non-stochastic zero inflation steady state when the underlying model features a subset of prices that stay rigid over multiple periods, as in the popular Calvo model. I am able to demonstrate that the dy...
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Cardiff University
2019
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| Online Access: | https://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.768102 |