A small-sample study of the new-keynesian macro model

Seonghoon Cho, Antonio Moreno

Research output: Contribution to journalReview article

33 Citations (Scopus)

Abstract

This paper presents a small-sample study of the three-equation-three variable New-Keynesian macro model. While the point estimates imply that the Fed has been stabilizing inflation fluctuations since 1980, our econometric analysis suggests considerable uncertainty regarding the stance of the Fed against inflation. The canonical New-Keynesian macro model is strongly rejected by the likelihood ratio test, but we propose the direction in which it needs to be modified in order to fit the data.

Original languageEnglish
Pages (from-to)1461-1481
Number of pages21
JournalJournal of Money, Credit and Banking
Volume38
Issue number6
DOIs
Publication statusPublished - 2006 Jan 1

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Small sample
Macro model
Inflation
New Keynesian
Econometric analysis
Likelihood ratio test
Fluctuations
Uncertainty

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics

Cite this

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A small-sample study of the new-keynesian macro model. / Cho, Seonghoon; Moreno, Antonio.

In: Journal of Money, Credit and Banking, Vol. 38, No. 6, 01.01.2006, p. 1461-1481.

Research output: Contribution to journalReview article

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