Trend Inflation and Evolving Inflation Dynamics:A Bayesian GMM Analysis

B-Tier
Journal: Review of Economic Dynamics
Year: 2023
Volume: 51
Pages: 506-520

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Inflation dynamics are investigated by estimating a generalized version of the New Keynesian Phillips curve (NKPC) of Galí and Gertler (1999) using Bayesian GMM. US macroeconomic data suggests that the generalized NKPC (GNKPC) performs best in terms of quasi-marginal likelihood among those considered both during and after the Great Inflation period. The estimated GNKPC indicates that when trend inflation fell after the Great Inflation period, the probability of price change decreased and the GNKPC flattened, which is in line with findings by previous studies. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:22-126
Journal Field
Macro
Author Count
3
Added to Database
2026-01-25