• Media type: E-Book
  • Title: How does the Phillips curve slope vary with repricing rates?
  • Contributor: Veirman, Emmanuel de [Author]
  • Published: Frankfurt am Main, Germany: European Central Bank, [2023]
  • Published in: Europäische Zentralbank: Working paper series ; 2804
  • Extent: 1 Online-Ressource (circa 36 Seiten); Illustrationen
  • Language: English
  • DOI: 10.2866/246375
  • ISBN: 9789289960670
  • Identifier:
  • Keywords: Inflation ; Phillips curve ; price setting ; Graue Literatur
  • Origination:
  • Footnote:
  • Description: In sticky price models, the slope of the Phillips curve depends positively on the probability of price adjustment. I use a series for the empirical frequency of price adjustment to test this implication. I find some evidence that the Phillips curve slope depends positively on the repricing rate. My results support the implication from New Keynesian theory with Calvo pricing that the Phillips curve slope is a convex function of the frequency of price adjustment. However, at all observed values of the frequency of price adjustment, the empirical Phillips curve relation is much flatter than the New Keynesian Phillips Curve at standard parameter values would imply.
  • Access State: Open Access