… that average inflation affects the short-run output-inflation tradeoff is important for policy.
For example, it is likely that the trade-off facing policymakers in the United States has changed …

… that agree with existing research in its support of New Keynesian theory. The impact of
average inflation on the output-inflation trade-off in forty-three individual countries w examined. A …

… By contrast, the new classical imperfect-information model argues that the expectation does
… and the output-inflation tradeoff. Therefore, in this paper I test the New Keynesian theory on …

… explosion of key variables in the model. In the New Keynesian model, we will also find that
… in the outputinflation space as shown in Figure 8. The reason is simple. In the microfounded …

… contending views of new classical and new Keynesians. This paper provides a review of
literature on output-inflation trade-off based on new classical and new Keynesian views as an …

… the new classical theory, or by the mean rate of inflation as hypothesised by the new Keynesian
theory. … Section 2 discusses the empirical literature on output-inflation tradeoff. Section 3 …

… The tradeoff was remarkably stable for the sample period prior to the change, but after the
… , each in turn based on: (i) the New Keynesian theory of menu costs; (ii) misperceptions of …

… the short-run output-inflation trade-off within the new Keynesian perspective in South … New
Keynesian economic theory of the nominal rigidity hypothesis on the output-inflation trade-off …

… The output-inflation trade-off is investigated in a rational expectations equilibrium economy
in which costly price setting makes it inefficient for agents to vary their prices at every instant. …

… output– inflation trade off. These prior tests of the new classical model become moot, since
the new Keynesian model developed by BMR (1988) also has the same implication. BMR’s …