International Evidence on the Efficacy of new-Keynesian Models of Inflation Persistence *

@inproceedings{Korenok2006InternationalEO,
  title={International Evidence on the Efficacy of new-Keynesian Models of Inflation Persistence *},
  author={Oleg Korenok and Stanislav Radchenko and Norman R. Swanson},
  year={2006}
}
In this paper we take an agnostic view of the Phillips curve debate, and carry out an empirical investigation of the relative and absolute efficacy of Calvo sticky price (SP), sticky information (SI), and sticky price with indexation models (SPI), with emphasis on their ability to mimic inflationary dynamics. In particular, we look at evidence for a group of 13 OECD countries, and we consider three alternative measures of inflationary pressure, including the output gap, labor share, and… CONTINUE READING