In an important and highly influential paper [Gali, J., Gertler, M., 1999. Inflation dynamics: A structural econometric analysis. Journal of Monetary Economics 44, 195-222] develop and estimate a structural new Keynesian Phillips curve model of inflation dynamics based on the [Calvo, Guillermo,...

This paper shows how increased goods market competition affects the behavior of inflation in a multisector economy. By raising the price elasticity of demand, increased goods market competition theoretically lowers inflation and makes the aggregate price level less sensitive to aggregate demand...

Within only a few years, the new open economy macroeconomics (NOEM) has emerged as a potential rival to the Mundell-Fleming framework, as modified by Dornbusch and others in the 1980s and 1990s using linear-quadratic models, as the dominant analytical framework in the study of open economies....