The small open-economy New Keynesian Phillips Curve: empirical evidence and implied inflation dynamics

In this paper we apply GMM estimation to assess the relevance of domestic versus external determinants of CPI inflation dynamics in a sample of OECD countries typically classified as open economies. The analysis is based on a variant of the small open-economy New Keynesian Phillips Curve derived in Galí and Monacelli (Rev Econ Stud 72:707–734, 2005), where the novel feature is that expectations about fluctuations in the terms of trade enter explicitly. For most countries in our sample the expected relative change in the terms of trade emerges as the more relevant inflation driver than the contemporaneous domestic output gap.

Translating Luciano Erba: a conversation with Peter Robinson

Interview with Peter Robinson (pp.195-201) and ‘three uncollected translations’ of Luciano Erba by Peter Robinson (pp.202-204).

Peter Robinson

Profile article in Italian by Fabrizio Caramagna with sample aphorisms in English by Peter Robinson and Italian translation by Caramagna with Sara Bauducco and Ornella Trevisan