scholarly journals Trend Inflation and Inflation Persistence in the New Keynesian Phillips Curve

2006 ◽  
Author(s):  
Timothy Cogley ◽  
Argia M. Sbordone
Keyword(s):  
Phillips Curve ◽  
New Keynesian ◽  
New Keynesian Phillips Curve ◽  
Inflation Persistence ◽  
Trend Inflation

Trend Inflation, Indexation, and Inflation Persistence in the New Keynesian Phillips Curve

2008 ◽  
Vol 98 (5) ◽  
pp. 2101-2126 ◽  
Author(s):  
Timothy Cogley ◽  
Argia M Sbordone
Keyword(s):  
Monetary Policy ◽  
Ad Hoc ◽  
Phillips Curve ◽  
New Keynesian ◽  
Time Varying ◽  
New Keynesian Phillips Curve ◽  
Inflation Persistence ◽  
Long Run ◽  
Trend Inflation ◽  
Forward Looking

Purely forward-looking versions of the New Keynesian Phillips curve (NKPC) generate too little inflation persistence. Some authors add ad hoc backward-looking terms to address this shortcoming. We hypothesize that inflation persistence results mainly from variation in the long-run trend component of inflation, which we attribute to shifts in monetary policy. We derive a version of the NKPC that incorporates a time-varying inflation trend and examine whether it explains the dynamics of inflation. When drift in trend inflation is taken into account, a purely forward-looking version of the model fits the data well, and there is no need for backward-looking components. (JEL E12, E31, E52)

The New Keynesian Phillips curve under trend inflation and strategic complementarity

2007 ◽  
Vol 29 (1) ◽  
pp. 37-59 ◽  
Author(s):  
Hasan Bakhshi ◽  
Hashmat Khan ◽  
Pablo Burriel-Llombart ◽  
Barbara Rudolf
Keyword(s):  
Phillips Curve ◽  
New Keynesian ◽  
New Keynesian Phillips Curve ◽  
Strategic Complementarity ◽  
Trend Inflation

scholarly journals KREDIBILITAS BANK SENTRAL DAN PERSISTENSI INFLASI DI INDONESIA

2017 ◽  
Vol 17 (2) ◽  
pp. 155
Author(s):  
Rachman Hakim ◽  
Munawar Ismail ◽  
Arif Hoetoro
Keyword(s):  
Central Bank ◽  
Inflation Targeting ◽  
Phillips Curve ◽  
New Keynesian ◽  
New Keynesian Phillips Curve ◽  
Inflation Persistence ◽  
The Impact ◽  
The Relationship

The relationship between the credibility of the central bank and the persistence of inflation is still ambigous as this information is crucial in setting the appropriate policy for combating an inflation problem. The objective of this paper is to measure the rate of inflation persistence and to examine the importance of the credibility of the bank central on the persistence of inflation in Indonesia by using the New Keynesian Phillips Curve Hybrid. It is found that the persistence of inflation in the period of full - fledged Inflation Targeting (2006:1-2012:3) lower when compared with the period of Inflation Targeting Lite (2000:1-2005:4). Meanwhile, the credibility of the central bank is significantly influencing the persistence of inflation only when Indonesia was implementing the Full-Fledged Inflation Targeting. When Indonesia was applying the Inflation Targeting Lite, the impact of bank central credibility on persitence inflation was not significant. These findings indicate that the behavior of inflation in Indonesia was backward looking during the periode of Inflation Targeting Lite and becoming forwardlooking after adopting the Full-Fledged Inflation Targeting Policy. This change is related to the increased credibility of the central bank in the full - fledged Inflation Targeting period.

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