The steep increases in unemployment associated with the financial crisis and global recession of 2008–2009, and the widespread focus on unemployment in both the popular press and in policy debates, is in sharp contrast to the canonical new Keynesian model in which unemployment is noticeably absent. In that model, workers are never unemployed, and only hours worked per worker vary over the busin...

One of the most significant changes in monetary economics at beginning twenty-first century has been virtual disappearance what was once a dominant focus, role money policy, and parallelly, liquidity preference-money supply (LM) curve. Economists used to consider policy with help LM curve as part analytical framework which captures demand for money. However, workhorse model modern theory New Ke...

New Keynesian form of the Phillips Curve assumes a shortterm trade-off between inflation and real economic activity, either in unit labour cost or output gap specification. Extending (NKPC) with backward-looking price setting, our aim is to examine impact expectations, lagged inflation, cost, import prices effective exchange rate on dynamics Czech Republic 2000M1 2020M12. Dealing non-stationary...

Blanchflower and Oswald (1994) have argued that, in regional data, the level of unemployment is related to the fevel of wages. This result is at variance with an application of the original Phillips curve to regional data, which would predict that the change in wages ought to be related to the unemployment rate. On the other hand, there is considerable empirical support for the expectations-aug...

This paper estimates a structural New Keynesian model to test whether globalization has changed the behavior of U.S. macroeconomic variables. Several key coefficients in the model – such as the slopes of the Phillips and IS curves, the sensitivities of domestic inflation and output to “global” output, and so forth – are allowed in the estimation to depend on the extent of globalization (modeled...

Estimates of the effect of different international monetary regimes on the parameters of the Phillips curve, the Keynesian consumption function, and other reduced-form macroeconomic relationships are given. The estimates provide a quantitative assessment of the importance of the Lucas critique for such regime shifts. The estimates are calculated by stochastically simulating an estimated multico...