Article | Journal of Money, Credit & Banking | February 2007

The Persistence of Inflation Versus that of Real Marginal Cost in the New Keynesian Model

by Julio J. Rotemberg

Abstract

This note provides an example where the New Keynesian Phillips Curve leads inflation to be substantially more persistent than the output gap.

Keywords: Macroeconomics; Inflation and Deflation; Cost;

Citation:

Rotemberg, Julio J. "The Persistence of Inflation Versus that of Real Marginal Cost in the New Keynesian Model." Journal of Money, Credit & Banking 39, no. 1 (February 2007): 237–239.