The meta-Phillips Curve: modelling U.S. inflation in the presence of regime change

A novel approach to modelling inflation dynamics is presented based on a set of Hybrid New-Keynesian Phillips Curves, distinguished by the regime duration and measures of real marginal cost, and combined into a meta-Phillips Curve using model averaging techniques. The analysis of US data over 1950q1...

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Main Author: Aristidou, Chrystalleni
Format: Article
Published: Elsevier 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/52837/
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author Aristidou, Chrystalleni
author_facet Aristidou, Chrystalleni
author_sort Aristidou, Chrystalleni
building Nottingham Research Data Repository
collection Online Access
description A novel approach to modelling inflation dynamics is presented based on a set of Hybrid New-Keynesian Phillips Curves, distinguished by the regime duration and measures of real marginal cost, and combined into a meta-Phillips Curve using model averaging techniques. The analysis of US data over 1950q1 - 2016q1 shows that, while the importance of expectations of future inflation varies through time depending on the monetary policy regime and economic environment, future expectations make a more substantial contribution to current inflation than past inflation, and that the labour share is superior to the output gap as a measure of cyclical pressures on prices.
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spelling nottingham-528372020-05-04T19:45:20Z https://eprints.nottingham.ac.uk/52837/ The meta-Phillips Curve: modelling U.S. inflation in the presence of regime change Aristidou, Chrystalleni A novel approach to modelling inflation dynamics is presented based on a set of Hybrid New-Keynesian Phillips Curves, distinguished by the regime duration and measures of real marginal cost, and combined into a meta-Phillips Curve using model averaging techniques. The analysis of US data over 1950q1 - 2016q1 shows that, while the importance of expectations of future inflation varies through time depending on the monetary policy regime and economic environment, future expectations make a more substantial contribution to current inflation than past inflation, and that the labour share is superior to the output gap as a measure of cyclical pressures on prices. Elsevier 2018-09-30 Article PeerReviewed Aristidou, Chrystalleni (2018) The meta-Phillips Curve: modelling U.S. inflation in the presence of regime change. Journal of Macroeconomics, 57 . pp. 367-379. ISSN 0164-0704 Inflation; Hybrid New Keynesian Phillips Curve; Model averaging; Structural breaks https://www.sciencedirect.com/science/article/pii/S0164070418300041?via%3Dihub doi:10.1016/j.jmacro.2018.07.002 doi:10.1016/j.jmacro.2018.07.002
spellingShingle Inflation; Hybrid New Keynesian Phillips Curve; Model averaging; Structural breaks
Aristidou, Chrystalleni
The meta-Phillips Curve: modelling U.S. inflation in the presence of regime change
title The meta-Phillips Curve: modelling U.S. inflation in the presence of regime change
title_full The meta-Phillips Curve: modelling U.S. inflation in the presence of regime change
title_fullStr The meta-Phillips Curve: modelling U.S. inflation in the presence of regime change
title_full_unstemmed The meta-Phillips Curve: modelling U.S. inflation in the presence of regime change
title_short The meta-Phillips Curve: modelling U.S. inflation in the presence of regime change
title_sort meta-phillips curve: modelling u.s. inflation in the presence of regime change
topic Inflation; Hybrid New Keynesian Phillips Curve; Model averaging; Structural breaks
url https://eprints.nottingham.ac.uk/52837/
https://eprints.nottingham.ac.uk/52837/
https://eprints.nottingham.ac.uk/52837/