Traditional versus New Keynesian Phillips Curves : Evidence from Output Effects

Title data

Roeger, Werner ; Herz, Bernhard:
Traditional versus New Keynesian Phillips Curves : Evidence from Output Effects.
In: International Journal of Central Banking. Vol. 8 (2012) Issue 2 . - pp. 87-109.
ISSN 1815-7556

Official URL:

Abstract in another language

We identify a crucial difference between the backward-looking and forward-looking Phillips curve concerning thereal output effects of monetary policy shocks. The backward-looking Phillips curve predicts a strict intertemporal trade-off in the case of monetary shocks: a positive short-run response of output is followed by a period in which output is below baseline and the cumulative output effect is exactly zero. In contrast, the forward-looking model implies a positive cumu-lative output effect. The empirical evidence on the cumulated output effects of money is consistent with the forward-looking model. We also use this method to determine the degree of forward-looking price setting.

Further data

Item Type:	Article in a journal
Refereed:	Yes
Institutions of the University:	Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance > Chair Economics I - International Economics and Finance - Univ.-Prof. Dr. Bernhard Herz Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance
Result of work at the UBT:	Yes
DDC Subjects:	300 Social sciences > 330 Economics
Date Deposited:	31 Mar 2015 08:18
Last Modified:	31 Mar 2015 08:18
URI:	https://eref.uni-bayreuth.de/id/eprint/9525