Notes on the inflation dynamics of the  new Keynesian Phillips curve
By: Andreas Hornstein.
Contributors: Federal Reserve Bank of Richmond.
Series: Working paper -- no. 07-4; Working paper (Federal Reserve Bank of Richmond : Online) -- no. 07-4.
Publisher: Federal Reserve Bank of Richmond
Published: 2007
Place of publication: [Richmond, Va.]
Language: eng
Format: Electronic resource
Description: "These notes contain the derivations for results stated without proof in Hornstein  (2007). First, I derive the log-linear approximation of the inflation dynamics in the  Calvo-model with elements of backward-looking pricing when the approximation takes  place around a positive average inflation rate. I derive a version of the "hybrid" New  Keynesian Phillips Curve (NKPC) that can be estimated using standard GMM techniques.  Second, I characterize the inflation dynamics implied by the NKPC when  marginal cost follows an AR(1) process. For this purpose I derive the autocorrelation  and crosscorrelation structure of inflation."--Federal Reserve Bank of Richmond web site.
Notes: Title from PDF file as viewed on Sept. 17, 2007.

Includes bibliographical references.

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