Observed inflation forecasts and the new Keynesian macro model

This paper compares the GMM and measured expectations in estimating the conventional New Keynesian macro model for the Euro area and the United States. The use of measured expectations strongly reduces the importance of lagged output and inflation terms.

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Year of publication:	2011
Authors:	Kortelainen, Mika ; Paloviita, Maritta ; Viren, Matti
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 112.2011, 1, p. 88-90
Publisher:	Elsevier
Subject:	Expectations Inflation Macro model

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009146113