Aggregate Supply and Potential Output

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Razin, Assaf;
  • Subject: New-Keynesian Phillips Curve, Potential Output, Taylor rules | new-keynesian phillips curve; potential output; taylor rules
    • jel: jel:E10 | jel:E12 | jel:E1 | jel:E60

The New-Keynesian aggregate supply derives from micro-foundations an inflation-dynamics model very much like the tradition in the monetary literature. Inflation is primarily affected by: (i) economic slack; (ii) expectations; (iii) supply shocks; and (iv) inflation pers... View more
  • References (6)

    Obstfeld, Maurice., and Kenneth Rogoff, (1996), Foundations of international macroeconomics, Chapter 10 (MIT Press, Cambridge).

    Okun, Arthur, (1978), “Efficient Disinflationary Policies,” American Economic Review, 348-52.

    Phelps, Ned .S., (1970), Microeconomic foundations of employment theory (Norton, New York).

    Razin, Assaf, and Chi-Wa Yuen, (2002), “The New Keynesian Phillips Curve: Closed Economy vs. Open Economy,” Economics Letters 75, 1-9.

    Woodford, Michael, (2003), Interest and Prices: Foundations of a Theory of Monetary Policy, Princeton University Press.

    Zhang, Lawrence Huiyan, (2002), “Sacrifice Ratios with Long-Lived Effects,” Johns Hopkins University Working Paper.

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