عنوان مقاله [English]
The relationship between real activity of an economy and the rate of inflation is one of the noteworthy issues in the field of macroeconomic. The majority of economic literature has focused on the use of the Philips curve in order to discover and clarify the the relationship between the real economic activity and the rate of inflation. The first Phillips curve has been criticized in the theoretical grounds, but in response to these criticisms, various forms of Phillips curve has developed; in which New Keynesian Philips Curve (NKPC) is one of them. Several types of research show that the Phillips curve relationship seemed to have broken down during the Great Recession. The basis for this argument is the observation that real activity dropped sharply without generating a corresponding drop in inflation. In this research, we use a dynamic stochastic general equilibrium (DSGE) approach and by applying NKPC we test this hypothesis for the Iranian economy. According to the results, there is a sharp drop in output without a corresponding decline in inflation.
7.Aruoba, S.B., Cuba-Borda, P., Schorfheide, F. 2013, "Macroeconomic Dynamics near the ZLB: A Tale of Two Countries", NBER Working Paper Series.
8.Ball, L., Mazumder, S., 2011, "Inflation Dynamics and the Great Recession", Brookings Papers on Economic Activity, Spring.
9.Christiano, L.J., Eichenbaum, M., Evans, C.L., 2005, "Nominal Rigidities and the Dynamic Effects of a shock to Monetary Policy", Journal of Political Economy, Vol. 113.
10.Christiano, L.J., Eichenbaum, M.S., Trabandt, M., 2014a, "Understanding the Great Recession", International Finance Discussion Papers, No. 1107.
11.Christiano, L.J., Motto, R., Rostagno, M., 2014b, "Risk Shocks", American Economic Review, Vol. 104.
12.Coibion, O., Gorodnichenko, Y., 2013, "Is The Philips Curve Alive and Well After All? Inflation and Expectations and the Missing Disinflation", NBER Working Paper.
13.De Graeve, F., 2008, "The External Finance Premium and the Macroeconomy: US Post-WWII Evidence", Journal of Economic Dynamics and Control, Vol. 32
14.Del Negro, M. Schorfheide, F., 2008, "Forming Priors for DSGE Models (and How it Affects the Assessment of Nominal Rigidities)", Journal of monetary Economics, Vol. 55.
15.Del Negro, M., Schorfheide, F., 2012, "DSGE Model-Based Forcasting", Federal Reserve Bank of New York: Staff reports, No. 554.
16.Del Negro, M. Schorfheide, F. 2013, "DSGE Model-Based Forcasting", in Handbook of Economics Forecasting, Ed. By Elliott, G., and Timmermann, A. Elsevier, Vol. 2.
17.Dotsey, M., king, R.G., 2005, "Implications of state-dependent pricing for dynamic macroeconomic models", Journal of Monetary Economics, Vol. 52.
18.Eichenbaum, M., Fisher, J., 2007, "Estimating the Frequency of Price Reoptimization in Calvo-style models", Journal of monetary Economics, Vol. 54.
19.Erceg, C.J., Levin, T., 2003, "Imperfect Credibility and Inflation Persistence", Journal of monetary Economics, Vol. 50.
20.Gali, J., Gertler, M., 1999, "Inflation Dynamics: A Structural Econometric Analysis", Journal of Monetary Economics, Vol. 44.
21.Greenwood, J., Hercovitz, Z., Krusell, P., 1998, "Long-Run Implications of Investment-Specific Technological Change", American Economic Review, Vol. 87.
22.Gust, C., Leduc, S., Vigfusson, R.J., 2007, "Trade Integration, Competition, and the Decline in Exchange-rate Pass-through", Board of Governors of the Federal Reserve System, International Finance Discussion Paper No. 864.
23.Kimball, M., 1995, "The Quantitative Analysis of The basic Neomonetarist Model", Journal of money, Credit and Banking, Vol. 27, No. 4.
24.King, R.G., Charles, I.P., Sergio, T.R., 1988, "Production, Growth and Business Cycles: I. The Basic Neoclassical Model", Journal of monetary Economics, Vol. 21.
25.King, R.G., Watson, M.W., 2012, "Inflation and Unit Labor Cost", Journal of Money, credit and Banking, Vol. 44.
26.Levin, A., Lopez-Salido, D., Yun, T., 2006, "Strategic Complementarities and Optimal Monetary Policy", Kiel Institute for the World Economy, Kiel Working Paper, No. 1355.
27.Primiceri, G., 2006, "Why Inflation Rose and Fell: Policymakers Beliefs and US Postwar Stabilization policy", Quarterly Journal of Economics, Vol. 121.
28.Reynaga, N.C., Rendon, S., 2012, "The Frisch Elasticity in Labor Markets with High Job Turnover", IZA Discussion Paper Series, No. 6991.
29.Sargent, T.J., Zha, T., Williams, N., 2006, "Shocks and Governement Beliefs: The Rise and Fall of American Inflation", American Economic Review, Vol. 94.
30.Sbordene, A.M., 2005, "Do Expected Future Marginal Costs Drive Inflation Dynamics?" Journal of Monetary Economics, Vol. 52.
31.Sbordone, A.M., 2010, "International Dimensions of Monetary Policy", University of Chicago Press, ISBN 0-226-27886-7.
32.Smets, F., Wouters, R., 2003, "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area", Journal of the European Economic Association, Vol. 1.
33.Smets, F., Wouters, R., 2007, "Shocks and Frictions in US Business Cycles: A Bayesian DSGE Approach", American Economic Review, Vol. 97, No. 3.