Is the Hybrid New Keynesian Phillips Curve Stable? Evidence from Some Emerging Economies
Journal of Quantitative Economics
This paper primarily examines whether the ‘hybrid new Keynesian Phillips curve’ (HNKPC) holds for four important emerging economics viz., Brazil, Russia, India and South Africa. This has been done after testing for the structural stability of this relationship. Econometric issues like the test of unit roots in presence of a structural break and estimation of output gap have also been done appropriately. Our findings suggest that the HNKPC is not stable for all the four countries. However, the analysis based on the two sub-periods thus formed clearly shows mixed evidence in respect of holding of this relationship.
Chowdhury, Kushal Banik and Sarkar, Nityananda, "Is the Hybrid New Keynesian Phillips Curve Stable? Evidence from Some Emerging Economies" (2017). Journal Articles. 2413.