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The Phillips curve is an economic model, ... The New Keynesian Phillips curve was originally derived by Roberts in 1995, ... the Quantity Theory, and the Phillips Curve."
The New Keynesian Phillips curve was originally derived by Roberts in 1995, [48] and has since been used in most state-of-the-art New Keynesian DSGE models. [49] The new Keynesian Phillips curve says that this period's inflation depends on current output and the expectations of next period's inflation.
Post-Keynesian economists, on the other hand, reject the neoclassical synthesis and, in general, neoclassical economics applied to the macroeconomy. Post-Keynesian economics is a heterodox school that holds that both neo-Keynesian economics and New Keynesian economics are incorrect, and a misinterpretation of Keynes's ideas. The post-Keynesian ...
In macroeconomics, the triangle model employed by new Keynesian economics is a model of inflation derived from the Phillips Curve and given its name by Robert J. Gordon.The model views inflation as having three root causes: built-in inflation, demand-pull inflation, and cost-push inflation. [1]
Although Keynesian theory originally omitted an explanation of price levels and inflation, later Keynesians adopted the Phillips curve to model price-level changes. Some Keynesians opposed the synthesis method of combining Keynes's theory with an equilibrium system and advocated disequilibrium models instead.
Hydraulic macroeconomics is, essentially, a study of the economy that treats money as a form of liquid that circulates through the economic plumbing. William Phillips, an economist and creator of the Phillips curve, invented the MONIAC, a hydraulic computer which simulated the British economy. [3] [4] [5] This is the inspiration for the term.
Demand-pull inflation occurs when aggregate demand in an economy is more than aggregate supply.It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve.
One important application of the critique (independent of proposed microfoundations) is its implication that the historical negative correlation between inflation and unemployment, known as the Phillips curve, could break down if the monetary authorities attempted to exploit it.