Please use this identifier to cite or link to this item: http://buratest.brunel.ac.uk/handle/2438/3484
Title: Relative price variability and the Philips curve: Evidence from Turkey
Authors: Çatik, AN
Martin, C
Önder, AÖ
Issue Date: 2008
Publisher: Brunel University
Citation: Economics and Finance Working papers, Brunel University, 08-09.
Abstract: We argue that relative price changes are a key component of the Phillips curve relationship between inflation and output. Building on work by Ball and Mankiw, we propose including measures of the variances and skewness of relative price adjustment in an otherwise standard model of the Phillips curve. We examine the case of Turkey, where distribution of price changes is especially skewed and where the existence of a Phillips curve has been questioned. We have two main findings: (i) inclusion of measures of the distribution of relative price changes improves our understanding of the Phillips curve trade-off; (ii) there is no evidence of such a trade-off if these measures are not included.
URI: http://bura.brunel.ac.uk/handle/2438/3484
Appears in Collections:Economics and Finance
Dept of Economics and Finance Research Papers

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