Phillips curve and Monetary Policy
(2014) NEKH01 20142Department of Economics
- Abstract
- In this study, an expectations-augmented model of the Phillips curve will be provided for the Swedish market during the period 1997-2011. This will be done for four different measures of the expectation gap. These four measures were acquired by pairing up two measures of inflation (CPI and CPIF) with two measures of inflation expectations (that of the firms and that of employee/employer organisations). The method utilized for this evaluation has been the prediction error method (PEM). Moreover, in order to evaluate the long-term nature of the Phillips curve, different bootstrap methods have been used to provide information regarding the expectation gap in the long run. The overwhelming weight of the results, show that the expectation gap... (More)
- In this study, an expectations-augmented model of the Phillips curve will be provided for the Swedish market during the period 1997-2011. This will be done for four different measures of the expectation gap. These four measures were acquired by pairing up two measures of inflation (CPI and CPIF) with two measures of inflation expectations (that of the firms and that of employee/employer organisations). The method utilized for this evaluation has been the prediction error method (PEM). Moreover, in order to evaluate the long-term nature of the Phillips curve, different bootstrap methods have been used to provide information regarding the expectation gap in the long run. The overwhelming weight of the results, show that the expectation gap is zeros, and that the long-term Phillips curve is vertical. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4739232
- author
- Ali Akbari, Danial LU
- supervisor
- organization
- alternative title
- Evaluation of an Expectations-Augmented Phillips Curve in Sweden 1997-2011
- course
- NEKH01 20142
- year
- 2014
- type
- M2 - Bachelor Degree
- subject
- keywords
- expectations augmented Phillips curve, expectation gap, Sweden, prediction error method (PEM), bootstrap.
- language
- English
- id
- 4739232
- date added to LUP
- 2014-11-03 14:51:59
- date last changed
- 2014-11-03 14:51:59
@misc{4739232, abstract = {{In this study, an expectations-augmented model of the Phillips curve will be provided for the Swedish market during the period 1997-2011. This will be done for four different measures of the expectation gap. These four measures were acquired by pairing up two measures of inflation (CPI and CPIF) with two measures of inflation expectations (that of the firms and that of employee/employer organisations). The method utilized for this evaluation has been the prediction error method (PEM). Moreover, in order to evaluate the long-term nature of the Phillips curve, different bootstrap methods have been used to provide information regarding the expectation gap in the long run. The overwhelming weight of the results, show that the expectation gap is zeros, and that the long-term Phillips curve is vertical.}}, author = {{Ali Akbari, Danial}}, language = {{eng}}, note = {{Student Paper}}, title = {{Phillips curve and Monetary Policy}}, year = {{2014}}, }