The canonical inflation specification in sticky-price rational expectations models (the new-Keynesian Phillips curve) is often criticized on the grounds that it fails to account for the dependence of inflation on its own lags. In response, many recent studies have employed a “hybrid” sticky-price specification in which inflation depends on a weighted average of lagged and expected future values...

This paper presents a simple New-Keynesian small open economy model allowing for labour to be supplied both domestically and abroad with a locational preference to work at home rather than abroad. From this small change in the otherwise standard setup follows an important implication for the Phillips-curve: The opening of the "labour account" reduces the output-in‡ation trade-o¤, i.e. the Phill...

We study the effects of globalisation on slope New Keynesian Phillips curve for CPI inflation, based a panel 35 countries. find that output gap generally has significant positive effect but this decreases as integration in global economy increases. conclude advance been key force behind flattening price curves.