The [un]importance of forward-looking behavior in price specifications

@article{Fuhrer1997TheO,
  title={The [un]importance of forward-looking behavior in price specifications},
  author={J. Fuhrer},
  journal={Journal of Money, Credit and Banking},
  year={1997},
  volume={29},
  pages={338-350}
}
  • J. Fuhrer, J. Fuhrer
  • Published 1997
  • Economics
  • Journal of Money, Credit and Banking
  • The seminal work of Edmund S. Phelps (1978), John B. Taylor (1980), and Guillermo A. Calvo (1983) developed forward-looking models of price determination that imparted inertia to the price level. These models incorporate expectations of future prices and excess demand by imposing constraints (typically lag-lead symmetry constraints) that force future variables to enter the specification. In this paper, the author tests the empirical significance of future prices in specifications like those of… CONTINUE READING
    581 Citations

    Figures from this paper

    The New Keynesian Phillips Curve: From Sticky Inflation to Sticky Prices
    • 105
    • Highly Influenced
    • PDF
    Can rational expectations sticky-price models explain inflation dynamics?
    • 153
    • Highly Influenced
    • PDF
    Too Much Too Soon: Instability and Indeterminacy with Forward-Looking Rules
    • 30
    • Highly Influenced
    • PDF

    References

    SHOWING 1-10 OF 22 REFERENCES
    Staggered prices in a utility-maximizing framework
    • 8,150
    New Keynesian Economics and the Phillips Curve
    • 887
    Sticky Prices in the United States
    • 1,515
    • PDF
    Aggregate Dynamics and Staggered Contracts
    • J. Taylor
    • Economics
    • Journal of Political Economy
    • 1980
    • 2,342
    The federal reserve board MPS quarterly econometric model of the US economy
    • 76
    Models of Inflation and the Costs of Disinflation
    • 165