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| Olivier Musy |
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| ''A New Keynesian Phillips Curve With Staggered Contracts and Indexation'' |
| ( 2021, Vol. 41 No.1 ) |
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| We develop a New Keynesian Phillips curve based on a combination of staggered price contracts and indexation to past inflation. This Phillips curve links current inflation dynamics to past inflation with a positive weight, as well as current and lagged expectations of inflation and output, giving a possible alternative explanation for recent empirical findings on the role of expectations in the determination of inflation |
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| Keywords: Inflation Dynamics, Staggered contracts, Price Indexation, Sticky Prices, New Keynesian Phillips Curve, Lagged Expectations. |
JEL: E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General |
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| Manuscript Received : Mar 05 2020 | | Manuscript Accepted : Mar 10 2021 |
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