Politická ekonomie 2005, 53(1) | DOI: 10.18267/j.polek.497

Nový Keynesovský model inflace a jeho empirické ověření

Josef Arlt, Miroslav Plašil, Richard Horský

New-Keynesian model of inflation and its empirical verification

New concepts have been presented in modelling of inflation dynamics recently, among others the New Keynesian Phillips curve (NKPC). There are several traditional ways of NKPC model validity testing, but none of them seems to be practically applicable in conditions of the Czech Republic. We tried to test the validity of the NKPC model by the untraditional method proposed by Demery and Duck (2002). This method does not rely on direct estimation of NKPC parameters, but relatively easy tests based on the cointegration analysis of time series are employed. Its application indicates that the NKPC model cannot be considered as effective in conditions of the Czech Republic; this model does not describe the inflation process sufficiently and it is not a suitable model for inflation prediction or for the choice of appropriate monetary (anti-inflation) policy.

Keywords: inflation, time series, model, New-Keynesian Phillips curve, cointegration analysis
JEL classification: C22, E12, E31

Published: February 1, 2005  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Arlt, J., Plašil, M., & Horský, R. (2005). New-Keynesian model of inflation and its empirical verification. Politická ekonomie53(1), . doi: 10.18267/j.polek.497
Download citation

This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.