J. David López-Salido

TL;DR: In this paper, the authors extend the standard new Keynesian model to allow for the presence of rule-of-thumb consumers and show how the interaction of the latter with sticky prices and deficit financing can account for the existing evidence on the effects of government spending.

TL;DR: In this paper, the authors provide evidence on the fit of the New Phillips Curve (NPQ) for the Euro area over the period 1970-1998, and use it as a tool to compare the characteristics of European inflation dynamics with those observed in the U.S. They also analyze the factors underlying inflation inertia by examining the cyclical behavior of marginal costs, as well as that of its two main components.

TL;DR: In this article, the fit of the New Phillips Curve (NPC) for the Euro area over the period 1970-1998 was examined. And the authors used it as a tool to compare the characteristics of European inflation dynamics with those observed in the U.S.

TL;DR: In this paper, the fit of the New Phillips Curve (NPC) for the Euro area over the period 1970-1998, and use it as a tool to compare the characteristics of European inflation dynamics with those observed in the U.S.

TL;DR: In this article, the authors present a simple, theory-based measure of the variations in aggregate economic efficiency associated with business fluctuations, which they refer to as "the gap" and decompose into two constituent parts: a price markup and a wage markup.