Ascari, Guido (contributor); Merkl, Christian (contributor) - 2007
Phillips curve to make their point:
t = t+1 + yt (4)
Dropping the time indices implies a positive long-run trade-o� between … Figure 1) long-run Phillips curve, thus wiping out any trade-o�.
3.2 Disin�ation Dynamics
3.2.1 Standard NK Model
BG … New Keynesian Phillips curve (i.e., t = Et t+1 + yt, as used by
BG) by log-linearizing the model around the steady …