The Sticky Information Phillips Curve: Evidence for Australia.

• Autores: Christian Gillitzer
• Localización: Economic record, ISSN 0013-0249, Vol. 92, Nº. 299, 2016, págs. 548-567
• Idioma: inglés
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• Resumen

  • The Sticky Information Phillips curve ( SIPC) provides a theoretically appealing alternative to the sticky price New-Keynesian Phillips curve ( NKPC). This paper assesses the empirical performance of the SIPC for Australia. Estimates of the model's structural parameters indicate rejection of the SIPC over the low-inflation period, but the SIPC fits the data better over a longer sample period including the disinflation of the early 1990s. Overall, though, the NKPC appears to fit the data better than the SIPC. This is partly because forward-looking inflation dynamics are more important than implied by the SIPC under plausible parameter values.