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Caraiani Petre (Romanian Academy)
Sticky Prices Versus Sticky Information : an Application for Romania
Argumenta Oeconomica, 2009, nr 1 (22), s. 125-139, tab., aneks, bibliogr. 26 poz.
Krzywa Phillipsa, Keynesizm, Polityka pieniężna, Modele bayesowskie, Reguła Taylora
Phillips curve, Keynesian theory, Monetary policy, Bayesian models, Taylor rule
In this paper I compare New Keynesian models under different assumptions regarding the Phillips curves. I use three specifications of the Phillips curves, namely sticky prices, sticky prices with indexation and sticky information specification. I estimate the three models using Bayesian techniques. The degree of price stickiness is moderate, as is the degree of sticky information. The estimates of the Taylor rule are stable across the three models. The Bayesian comparison of the models favours the sticky information model. The results imply that the central bank in Romania should pay attention to the way the agents' expectations are formed. (original abstract)
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