Monetary Policy Shifts and Inflation Dynamics

  • Paolo Surico
Chapter

Abstract

The New Keynesian Phillips Curve (NKPC) has recently become the building block of many monetary policy models. This relation plays a central role in understanding aggregate fluctuations and quantifying the transmission mechanism of monetary policy. Most of the success of the NKPC hinges on the fact that it is derived from first principles, thereby implying that its estimates survive the Lucas (1976) critique.

Keywords

Monetary Policy Euro Area Nominal Interest Rate Phillips Curve Labour Share 
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Copyright information

© Bank of England 2007

Authors and Affiliations

  • Paolo Surico

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