Resumen de The Sticky Information Phillips Curve: Evidence for Australia.
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.
