Describe the differences in the dynamic relationship between output and inflation implied by the Traditional and New Keynesian Phillips Curve (NKPC). How does the NKPC address the Lucas (1976) Critique?

December 2nd, 2015

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Describe the differences in the dynamic relationship between output and inflation implied by the Traditional and New Keynesian Phillips Curve (NKPC). How does the NKPC address the Lucas (1976) Critique?

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Word limit is of 2000 words. Please ensure that all sources and quotes are properly references and cited throughout essay.

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Describe the differences in the dynamic relationship between output and inflation implied by the Traditional and New Keynesian Phillips Curve (NKPC). How does the NKPC address the Lucas (1976) Critique?

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