An open-economy new Keynesian Phillips curve for the UK

• 成果类型: Article
• 署名作者: Batini, N; Jackson, B; Nickell, S
• 署名单位: International Monetary Fund; Federal Reserve System - USA; Federal Reserve Bank - New York; University of London; London School Economics & Political Science; Bank of England
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.08.003
• 发表日期: 2005
• 页码: 1061-1071
• 关键词: open economy; New Keynesian Phillips curve; marginal cost; labour share; inflation dynamics

摘要

We estimate a pricing equation or new Keynesian Phillips curve (NKPC) obtained from a structural dynamic model of price setting based on Rotemberg [1982. Sticky prices in the United States. Journal of Political Economy 90(6), 1187-1211] and extended to capture employment adjustment costs and the openness of the United Kingdom. This model nests the baseline Gali and Gertler [1999. Inflation dynamics: a structural econometric analysis. Quarterly Journal of Economics 110, 127-159] and Sbordone [2002. Prices and unit labor costs: a new test of price stickiness. Journal of Monetary Economics 49, 265-292] relationship between inflation and marginal cost in the limiting case of no employment adjustment costs, no impact of relative prices of imported inputs on real marginal cost and a constant equilibrium markup. Our findings indicate that each of our modifications to the baseline NKPC model is important for U.K. data, so that inflation in the U.K. is explained both by changes in employment and by changes in real import prices, in general, and real oil prices, in particular. External competitive pressures also seem to affect U.K. inflation via their impact on the equilibrium price markup of domestic firms. (c) 2005 Elsevier B.V. All rights reserved.