Kuester, Keith; Müller, Gernot J.; Stölting, Sarah - 2007
Macroeconomic data suggest that the New Keynesian Phillips curve is quite flat - despite microeconomic evidence … is limited, even if prices are fairly flexible. Using a standard New Keynesian model, we show that the GMM approach to … the New Keynesian Phillips curve leads to inconsistent and upward biased estimates if cost-push shocks indeed are …