Phillips curve

Publication date: 5 Jun 2019 | Publication type: NIESR Discussion Paper | Theme: Macroeconomics | Authors: Farmer, R | External authors: Nicolo, G | JEL classification: E3, E4, F0 | NIESR discussion paper number: 505
Farmer and Nicolò (2018) show that the Farmer Monetary (FM)-Model outperforms the three-equation New-Keynesian (NK)-model in post war U.S. data. In this paper, we compare the marginal data density of the FM-model with marginal data densities for determinate and indeterminate versions of the NK-...