EC9012MacroeconomicsJenniferSmith–2012-13TheNewKeynesianPhillipsCurve2Topics????OutlineofDSGEmodelsNominalrigidityTheoutput-inflationrelationMonetarypolicyDepartmentofEconomics–JenniferSmith3LearningobjectivesBytheendofthistopic,youshouldbeableto:?UnderstandtheimportanceofaPhillips-curve–typerelationshipinamodelofthemacroeconomy.?UnderstandhowtheNKPCisderived.?KnowhowtheNKPCfareswhenconfrontedwiththedata.?SeehowsomemacromodellershaverespondedtoperceivedfailuresofthebasicNKPC.DepartmentofEconomics–JenniferSmith4Outline??????ReadingIntroduction:TheroleoftheNKPCInflationintheCalvomodelImplicationsofNKPCThefailureoftheoutputgapNKPCSolutionsDepartmentofEconomics–JenniferSmith5Reading:NKPCTextbook?Romer(2011),AdvancedMacroeconomics(4thedition),McGraw-Hill.Chapter7“DSGEmodelsoffluctuations”.Web?Barrdear,John(2009),“DerivingtheNewKeynesianPhillipsCurvewithCalvopricing”.http://barrdear.com/john/2009/02/18/deriving-the-new-keynesian-phillips-curve-nkpc-with-calvo-pricing/?Gali,Jordi(2009),Lecturenoteson“Inflationdynamics”.crei.cat/people/gali/Teaching pdf/inflation dynamics.pdfDepartmentofEconomics–JenniferSmith6Reading:NKPCJournalarticles?Gali,JordiandMarkGertler(1999),“Inflationdynamics:astructuraleconometricanalysis”,JournalofMonetaryEconomics,44(2)195-222.http://go.warwick.ac.uk/ec9012/details/galigertler1999.pdf?Gali,JordiandOlivierBlanchard(2007),“RealwagerigiditiesandtheNewKeynesianmodel”,JournalofMoney,CreditandBanking,39(1)35-65.http://www.crei.cat/people/gali/bg07jmcb.pdfCommentaries(largelyverbal,easily-readable,discussions)?Gali,JordiandMarkGertler(2003),“Inflationdynamics:combiningmeasurementwiththeory”,NBERReporter:ResearchSummary,Summer.http://www.nber.org/reporter/summer03/gertler.html?Mankiw,NGregory(2001),“Theinexorableandmysterioustradeoffbetweeninflationandunemployment”,EconomicJournal,111(471)C45-C61.http://www.frbsf.org/publications/economics/letter/2007/el2007-35.htmlDepartmentofEconomics–JenniferSmith
the new keynesian phillips curve university of wa
