Prague Economic Papers 2023, 32(5):520-549 | DOI: 10.18267/j.pep.842

Symmetric and Asymmetric Dynamics of Output Gap and Inflation Relation for Turkish Economy

Burhan Biçer ORCID..., Almila Burgac Cil ORCID...
Department of Economics, Cukurova University, Turkey

This paper uses symmetric and asymmetric testing procedures to examine the issue of the relationship between the output gap and inflation for the Turkish economy using data from 2002:01 to 2021:09. First, it analyses the cointegration by applying different cointegration tests taking into account structural breaks and asymmetric behaviour to reveal whether the relation varies between sub-periods. Afterwards, it examines the asymmetric causality between different shocks. Our empirical results indicate that there is a long-run relationship between series in the existence of two structural breaks and asymmetry. The results also show asymmetric causality running from positive (negative) output gap to positive (negative) inflation shock, and running from negative inflation shock to negative output gap shock. The overall findings indicate the importance of having in mind the structural breaks and asymmetric behaviour of macroeconomic variables in policy-making processes, such as in Turkey during high and volatile inflation.

Keywords: Output gap, inflation, asymmetric effect, structural breaks, NARDL
JEL classification: C01, C32, E31, E32, E58

Received: November 30, 2022; Revised: May 12, 2023; Accepted: June 7, 2023; Published: October 27, 2023  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Biçer, B., & Burgac Cil, A. (2023). Symmetric and Asymmetric Dynamics of Output Gap and Inflation Relation for Turkish Economy. Prague Economic Papers32(5), 520-549. doi: 10.18267/j.pep.842
Download citation

References

  1. Abbas, S. K. (2022). Asymmetry in the Regimes of Inflation and Business Cycles: the New Keynesian Phillips Curve. Applied Economics, 1-14. https://doi.org/10.1080/00036846.2022.2107610 Go to original source...
  2. Aguiar, A., Martins, M. M. F. (2005). Testing the Significance and the Non-linearity of the Phillips Trade-off in the Euro Area. Empirical Economics, 30(3), 665-691. https://doi.org/10.1007/s00181-005-0250-z Go to original source...
  3. Allsop, C., Vines, D. (2000). The Assessment: Macroeconomic Policy. Oxford Review of Economic Policy, 16(4), 1-32. https://doi.org/10.1093/oxrep/16.4.1 Go to original source...
  4. Alp, H., Öğünç, F., Sarikaya, Ç. (2012). Monetary Policy and Output Gap: Mind the Composition. CBT Research Notes in Economics, No:07.
  5. Akkoç, U. (2018). Recent Measurement Methods of the Output gap: An Application for Turkey. Güncel Yöntemlerle çikti Açiğinin Hesaplanmasi: Türkiye Uygulamasi. Current Debates in Economics & Econometrics, 2, 357-376.
  6. Andiç, S. (2018). Multivariate Filter for Estimating Potential Output Gap and Output Gap in Turkey. CBRT Working paper, 18/07, 1-28.
  7. Arabaci, Ö., Eryiğit, K. Y. (2012). A Threshold Regression Estimation of Phillips Curve: Turkey Case. Eskisehir Osmangazi Üniversitesi İİBF dergisi, 7, 29-47.
  8. Atuk, O., Özmen, M. U., Sarikaya, C. (2018). A Disaggregated Analysis of the Impact of Output Gap on Inflation and Implications for Monetary Policy. Prague Economic Papers, 2018(6), 668-683. https://doi.org/10.18267/j.pep.677 Go to original source...
  9. Bai, J., Perron, P. (2003) Computation and Analysis of Multiple Structural Change Models. Journal of Applied Econometrics, 18, 1-22. https://doi.org/10.1002/jae.659 Go to original source...
  10. Ball, L. Mankiw, G. Romer, D. (1988). New Keynesian Economics and the Output Inflation Trade-off. Brookings Papers on Economic Activity, 1-65. Go to original source...
  11. Bank of Canada (1997). Capacity Constraints, Price Adjustment, and Monetary Policy. Bank of Canada Review, Spring, 39-56.
  12. Beaudry, P., Doyle, M. (2000). What Happened to the Phillips Curve in the 1990s in Canada? Bank of Canada.
  13. Biçer, B. Burgaç, Çil, A., Dülger, F. (2021). New Keynesian Phillips Curve for Turkey: Estimation with Different Output Gap Filters. Global Agenda in Social Sciences, 8, 145-164.
  14. Bildirici, M., Ozaksoy, F. (2016). Non-linear Analysis of Post Keynesian Phillips Curve in Canada Labour Market. Procedia Economics and Finance, 38, 368-377. https://doi.org/10.1016/S2212-5671(16)30209-X Go to original source...
  15. Bildirici, M., Sonustun, Ozaksoy, F. (2018). Backward Bending Structure of Phillips Curve in Japan, France, Turkey and the U.S.A. Economic Research-Ekonomska Istrazivanja, 31, 537-549. https://doi.org/10.1080/1331677X.2018.1441046 Go to original source...
  16. Bilici, B., Çekin, S. E. (2020). Inflation Persistence in Turkey: A TVP - Estimation Approach. The Quarterly Review of Economics and Finance, 78, 64-69. https://doi.org/10.1016/j.qref.2020.04.002 Go to original source...
  17. Bilman, A. S., Utkulu, U. (2010). Inflation and Output Gap Reconsidered: Asymmetries and Nonlinear Phillips Curve Evidence for Turkish Economy. Journal of Yaşar University, 5(19), 3155-3170.
  18. Binder, M., Gross, M. (2013). Regime-switching Global Vector Autoregressive Models. ECB Working Paper Series, 1569, 1-56. Go to original source...
  19. Cao, D., Diba, B., Lee, D. (2023). Nonlinear Phillips Curve with Asymmetric Adjustment Cost.
  20. Calvo, G. (1983). Staggered Prices in a Utility-maximizing Framework. Journal of Monetary Economics, 12(3), 383-398. https://doi.org/10.1016/0304-3932(83)90060-0. Go to original source...
  21. Chortareas, G., Magonis, G., Panagiotidis, T. (2012). The Asymmetry of the New Keynesian Phillips Curve in the Euro-area. Econ. Letters, 114(2), 161-163. http://dx.doi.org/10.1016/j.econlet.2011.09.035 Go to original source...
  22. Clark, P., Laxton, D., Rose, D. (1995). Capacity Constraints, Inflation, and the Transmission Mechanism: Forward-looking Versus Myopic Policy Rules. IMF Working Paper, 75, 1-42. https://doi.org/10.5089/9781451849677.001 Go to original source...
  23. Clark, P., Laxton, D., Rose, D. (1996). Asymmetry in the U.S. Output-inflation Nexus. IMF Staff Papers, 43 (1), 216-251. https://doi.org/10.2307/3867358 Go to original source...
  24. Claus I. (2000). Is the Output Gap a Useful Indicator of Inflation? Reserve Bank of New Zealand, Discussion Paper Series, 5, 1-21.
  25. Coşar, Erdoğan, S., Kösem S., Sarikaya, Ç. (2013). Do We Really Need Filters in Estimating Output Gap? Evidence from Turkey. CBRT Working paper, 13/33, 1-28.
  26. De Veirman, E. (2007). Which Nonlinearity in the Phillips Curve? The Absence of Accelerating Deflation in Japan. Reserve Bank of New Zealand Working Paper, 536.
  27. De Masi, P. (1997). IMF Estimation of Potential Output: Theory and Practice. Staff Studies for the World Economic Outlook, 14, 1-14. Go to original source...
  28. Dupasquier, C., Ricketts, N. (1998). Non-linearities in the Output-inflation Relationship: Some Empirical Results for Canada. Bank of Canada Working Paper, 98(14), 1-31. https://doi.org/10.34989/swp-1998-14 Go to original source...
  29. Eliasson, A. C. (2001). Is the Short-run Phillips Curve Nonlinear? Empirical Evidence for Australia, Sweden and the United States. Sveriges Riksbank. Working Paper Series, 124, 1-25.
  30. Fabiani, S., Druant, M., Hernando, I., Kwapil, C., Landau, B., Loupias, C., Martins, F., Matha, T., Sabbatini, R., Stahl, H., Stokman, A. (2006). What Firms' Surveys Tell Us About Price-setting Behaviour in the Euro Area. International Journal of Central Banking, 2(3), 1-46.
  31. Fasanya, I. O., Adetokunbo, A., Ajayi, F. O. (2018). Oil Revenue Shocks and the Current Account Balance Dynamics in Nigeria: New Evidence from Asymmetry and Structural Breaks. SPOUDAI Journal of Economics and Business, 68(4), 72-87.
  32. Filardo, A. (1998). New Evidence on the Output Cost of Fighting Inflation. Economic Review, Federal Reserve Bank of Kansas City, 83, 33-61.
  33. Fisher, P. G., Mahadeva, L., Whitley, J. D. (1996). The Output Gap and Inflation: Experience at the Bank of England. In BIS Model Builders Meeting, Basel.
  34. Fisher, T. C. G. (1989). Efficiency Wages: A Literature Survey. Working Paper, 89-5. Bank of Canada, Ottawa.
  35. Friedman, M. (1968). The Role of Monetary Policy. American Economic Review, 58(1), 1-17.
  36. Gali, J., Gertler, M. (1999). Inflation Dynamics: a Structural Econometric Analysis. Journal of Monetary Economics, 44(2), 195-222. https://doi.org/10.1016/S0304-3932(99)00023-9 Go to original source...
  37. Gali, J. (2008). Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework. Princeton University Press.
  38. Genberg, H., Pauwels, L. L. (2003). An Open Economy New Keynesian Phillips Curve: Evidence from Hong Kong. Pacific Economic Review, 10(2), 261-277. https://doi.org/10.1111/j.1468-0106.2005.00271.x Go to original source...
  39. Gregory, A. W., Hansen, B. E. (1996). Residual-based Tests for Cointegration in Models with Regime Shifts. Journal of Econometrics, 70(1), 99-126. https://doi.org/10.1016/0304-4076(69)41685-7 Go to original source...
  40. Gross, M., Semmler, W. (2017). Mind the Output Gap: the Disconnect of Growth and Inflation During Recessions and Convex Phillips Curves in the Euro Area. Working Paper Series, European Central Bank, 1-58. Go to original source...
  41. Hacker, R. S., Hatemi-J, A. (2006). Tests for Causality Between Integrated Variables Using Asymptotic and Bootstrap Distributions: Theory and Application. Applied Economics, 38(13), 1489-1500. https://doi.org/10.1080/ 00036840500405763. Go to original source...
  42. Hansen, B. (1970). Excess Demand, Unemployment, Vacancies, and Wages. The Quarterly Journal of Economics, 84(1), 1-23. https://doi.org/10.2307/1879397 Go to original source...
  43. Hasanov, M., Araç, A., Telatar, F. (2010). Nonlinearity and Structural Stability in the Phillips Curve: Evidence from Turkey. Economic Modelling, 27. https://doi.org/10.1016/j.econmod.2010.03.009 Go to original source...
  44. Harvey, D. I., Leybourne, S. J. (2007). Testing for Time Series Linearity. Econometrics Journal, 10, 149-165. Go to original source...
  45. Harvey, D. I., Leybourne, S. J., Xiao, B. (2008). A Powerful Test for Linearity When the Order of Integration Is Unknown. Studies Nonlinear Dynamics and Econometrics, 12(3). https://doi.org/10.2202/1558-3708.1582 Go to original source...
  46. Hatemi-J, A. (2012). Asymmetric Causality Tests with an Application. Empirical Economics, 43(1), 447-456. https://doi.org/10.1007/s00181-011-0484-x. Go to original source...
  47. Hodrick, R. J., Prescott, E. C. (1997). Postwar U.S. Business Cycles: An Empirical Investigation. Journal of Money, Credit and Banking, 29(1), 1-16. Go to original source...
  48. Huh, H. S., Jang, I. (2007). Nonlinear Phillips Curve, Sacrifice Ratio, and the Natural Rate of Unemployment. Economic Modelling, 24, 797-813. https://doi.org/10.1016/j.econmod.2007.02.003 Go to original source...
  49. Kapetanios, G., Shin, Y., Snell, A. (2003). Testing for a Unit Root in the Nonlinear STAR Framework. Journal of Econometrics, 112(2003), 359-379. https://doi.org/10.1016/S0304-4076(02)00202-6 Go to original source...
  50. Kara, H., Öğünç, F., Özlale, Ü., Sarikaya, Ç. (2007). Estimating the Output Gap in a Changing Economy. Southern Economic Journal, 74(1), 269-289. https://doi.org/10.1002/j.2325-8012.2007.tb00837.x Go to original source...
  51. Kejriwal, M. (2008). Cointegration with Structural Breaks: An Application to the Feldstein-Horioka Puzzle. Studies in Nonlinear Dynamics & Econometrics, 12(1). https://doi.org/10.2202/1558-3708.1467 Go to original source...
  52. Kejriwal, M., Perron, P. (2010). Testing for Multiple Structural Changes in Cointegrated Regression Models. Journal of Business & Economic Statistics, 28, 503-522. http://dx.doi.org/10.1198/jbes.2009.07220 Go to original source...
  53. King, M. (2005). Monetary Policy: Practice Ahead of Theory. The Mais Lecture 2005: Speech by the Governor. Bank of England Quarterly Bulletin, Summer 2005.
  54. Kisswani, K. M. (2017). Evaluating the GDP-energy Consumption Nexus for the ASEAN-5 Countries Using Nonlinear ARDL. OEPC Energy Review, 318-343. https://doi.org/10.1111/opec.12113 Go to original source...
  55. Kobbi, I., Gabsi, F. B. (2017). The Nonlinearity of the New Keynesian Phillips Curve: The Case of Tunisia. Economies, MDPI, 5(3), 1-12. https://doi.org/10.3390/economies5030024 Go to original source...
  56. Kruse, R. (2011). A New Unit Root Test Against ESTAR Based on a Class of Modified Statistics. Statistical Papers, 52(1), 71-85. https://doi.org/10.1007/s00362-009-0204-1 Go to original source...
  57. Kuştepeli, Y. (2005). A Comprehensive Short-Run Analysis of a (Possible) Turkish Phillips Curve. Applied Economics, 37, 581-591. https://doi.org/10.1080/000368404200030749 Go to original source...
  58. Lai, Y. W. (2017). Output Gaps and the New Keynesian Phillips Curve: An Application of the Empirical Mode Decomposition. Economics Bulletin, 37(2), 952-961.
  59. Laxton, D., Meredith, G., Rose, D. (1995). Asymmetric Effects of Economic Activity on Inflation: Evidence and Policy Implications. IMF Staff Papers, 42(June), 344-374. https://doi.org/10.2307/3867576 Go to original source...
  60. Lee, D. J., Yoon, J. H. (2016). The New Keynesian Phillips Curve in Multiple Quantiles and the Asymmetry of Monetary Policy. Economic Modelling, 55, 102-114. http://dx.doi.org/10.1016/j.econmod.2016.02.002 Go to original source...
  61. Lepetit, A. (2018). Asymmetric Unemployment Fluctuations and Monetary Policy Trade-offs. HAL Working Paper, 1-35.
  62. L'Huillier, J.-P., Phelan, G., Zame, W. R. (2022). Flattening of the Phillips Curve and the Mandate of the Central Bank. http://dx.doi.org/10.2139/ssrn.4298975 Go to original source...
  63. Lipsey, R. G. (1960). The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1862-1957: A Further Analysis. Economica New Series. 27(105), 1-31. https://doi.org/10.2307/2551424 Go to original source...
  64. Lipsey, R. G. (1978). The Place of the Phillips Curve in Macroeconomic Models. In A. R. Bergstrom ed. Stability and Inflation, Chichester: John Wiley.
  65. Liu, D. (2011). Learning and Estimation of the New Keynesian Phillips Curve Models. Southern Economic Journal, 78, 2, 382-396. https://doi.org/10.4284/0038-4038-78.2.382 Go to original source...
  66. Lopcu, K., Dülger, F., Burgaç, A. (2013). Relative Productivity Increases and the Appreciation of the Turkish Lira. Economic Modelling, 35, 614-621. https://doi.org/10.1016/j.econmod.2013.08.005 Go to original source...
  67. Lucas, R. E. Jr. (1972). Expectations and the Neutrality of Money. Journal of Economic Theory, 4, 103-124. https://doi.org/10.1016/0022-0531(72)90142-1 Go to original source...
  68. Lucas, R. E. Jr. (1973). Some International Evidence on Output-inflation Trade-offs. American Economic Review, 63, 326-334.
  69. Malikane, C. (2014). A New Keynesian Triangle Phillips Curve. Economic Modelling, 43(C), 247-255. https://doi.org/10.1016/j.econmod.2014.08.010 Go to original source...
  70. Mankiw, N. G., Reis, R. (2002). Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve. Quarterly Journal of Economics, 117(4), 1295-1328. https://doi.org/10.1162/003355302320935034 Go to original source...
  71. Mayes, D. G., Chapple, B. R. (1995). The Costs and Benefits of Disinflation: A Critique of the Sacrifice Ratio. Reserve Bank of New Zealand Bulletin, 58(1), 9-21.
  72. Mihajlovic, V. (2019). Asymmetry in the Output Gap-inflation Nexus in the Western Balkan Countries: A Non-linear ARDL Approach. 11th International Scientific Conference: Econometric Modelling in Economics and Finance, 29th and 30th October 2019 Belgrade, Serbia.
  73. Mihajlovic, V., Marjanovic, G. (2020). Asymmetries in Effects of Domestic Inflation Drivers in the Baltic States: A Philllips Curve-based Nonlinear ARDL Approach. Baltic Journal of Economics, 20(1), 94-116. https://doi.org/10.1080/1406099X.2020.1770946 Go to original source...
  74. Musa, A., Salisu, A. A., Aliyu, A. O., Mevweroso, C. R. (2021). Analysis of Asymmetric Response of Exchange Rate to Interest Rate Differentials: The Case of African Big 4. North American Journal of Economics and Finance, 55, 1-10. https://doi.org/10.1016/j.najef.2020.101320. Go to original source...
  75. Musso, A., Stracca, L., van Dijk, D. (2009). Instability and Nonlinearity in the Euro Area Phillips Curve. International Journal of Central Banking, 5, 181-212.
  76. Neiss, K. S., Nelson, E. (2005). Inflation Dynamics, Marginal Cost, and the Output Gap: Evidence from Three Countries. Journal of Money, Credit and Banking, 37, 1019-1045. Go to original source...
  77. Ng, S., Perron, P. (2001). Lag Length Selection and the Construction of Unit Root Tests with Good Size and Power. Econometrica, 69(6), 1519-1554. https://doi.org/10.1111/1468%2D0262.00256 Go to original source...
  78. Okere K. I., Muoneke, O. B., Onuoha, F. C. (2021) Symmetric and Asymmetric Effects of Crude Oil Price and Exchange Rate on Stock Market Performance in Nigeria: Evidence from Multiple Structural Break and NARDL Analysis. Journal of International Trade and Economic Development, 1-27. https://doi.org/10.1080/09638199.2021.1918223. Go to original source...
  79. Orphanides, A. (2003). Monetary Policy Evaluation with Noisy Information. Journal of Monetary Economics, 50(3), 605-631. https://doi.org/10.1016/S0304-3932(03)00027-8 Go to original source...
  80. Öğünç, F., Sarikaya, Ç., (2011). Görünmez ama Hissedilmez Değil: Türkiye'de çikti Açiği. Central Bank Review, 11(2), 15-28.
  81. Önder, A. Ö. (2004). Forecasting Inflation in Emerging Markets by Using the Phillips Curve and Alternative Time Series Model. Emerging Markets Finance and Trade, (40)2, 71-82. https://doi.org/10.1080/1540496X.2004.11052566 Go to original source...
  82. Önder, Ö. (2009) The Stability of the Turkish Phillips Curve and Alternative Regime Shifting Models. Applied Economics, 41(20), 2597-2604. https://doi.org/10.1080/0003684070122264. Go to original source...
  83. Özbek, L., Özlale, Ü., (2005). Employing the Extended Kalman Filter in Measuring the Output Gap. Journal of Economic Dynamics and Control, 29(9), 1611-1622. https://doi.org/10.1016/j.jedc.2004.09.005 Go to original source...
  84. Pesaran, M. H., Shin, Y., Smith, R. J. (2001). Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics, 16(3), 289-326. Go to original source...
  85. Phelps, E. S. (1967). Phillips Curves, Expectations of Inflation and Optimal Unemployment over Time. Economica, 34(8), 254-281. https://doi.org/10.2307/2552025 Go to original source...
  86. Phillips, A. W. (1958). The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the UK, 1861-1957. Economica, 25, November, 283-299. https://doi.org/10.1111/j.1468-0335.1958.tb00003.x Go to original source...
  87. Razzak, W. (1997). The Inflation-output Trade-off. Is the Phillips Curve Symmetric? A Policy Lesson from New Zealand. Reserve Bank of New Zealand, 2, 1-25.
  88. Riggi, M., Venditti, F. (2015). Failing to Forecast Low Inflation and Phillips Curve Instability: A Euro-Area Perspective. International Finance, 18(1), 47-67. https://doi.org/10.1111/1468-2362.12062 Go to original source...
  89. Roberts, J. M. (1995). New Keynesian Economics and the Phillips Curve. Journal of Money, Credit and Banking, 27(4), 975-984. https://doi.org/10.2307/2077783 Go to original source...
  90. Rudd, J., Whelan, K. (2005). New Tests of the New-Keynesian Phillips Curve. Journal of Monetary Economics, 52(6), 1167-1181. https://doi.org/10.1016/j.jmoneco.2005.08.006 Go to original source...
  91. Saraçoğlu, B., Yiğit, Ö., Koçak, N. A. (2014). Türkiye İçin Çikti Açiği Tahmininde Alternatif Yöntemler. Business and Economics Research Journal, 3, 43-65.
  92. Samuelson, P.A., Solow, R.M. (1960). Problem of Achieving and Maintaining a Stable Price Level. American Economic Review, 50, 177-194. https://doi.org/10.4000/oeconomia.138 Go to original source...
  93. Sbordone, A. M. (2002). Prices and Unit Labour Costs: A New Test of Price Stickiness. Journal of Monetary Economics, 49, 265-92. https://doi.org/10.1016/S0304-3932(01)00111-8 Go to original source...
  94. Sbordone, A. M. (2005). Do Expected Future Marginal Costs Drive Inflation Dynamics? Journal of Monetary Economics, 52, 1183-97. https://doi.org/10.1016/j.jmoneco.2005.08.010 Go to original source...
  95. Shin, Y., Yu, B., Greenwood-Nimmo, M. (2014). Modelling Asymmetric Cointegration and Dynamic Multipliers in a Nonlinear ARDL Framework. In R. Scikles and W.C. Horrace (Eds.), Festschrift in honor of Peter Schmidt (s.281-314). New York: Springer. Go to original source...
  96. Sill, K. (2011). Inflation Dynamics and the New Keynesian Phillips Curve. Business Review, Federal Reserve Bank of Philadelphia, 1, 17-25.
  97. Stiglitz, J. E. (1984). Price Rigidities and Market Structure. American Economic Review, 74, 350-355.
  98. Stiglitz, J. E. (1986). Theories of Wage Rigidity. In Keynes' Economic Legacy: Contemporary Economic Theories, edited by J. L. Butkiewicz, K. J. Koford, and J. B. Miller.
  99. Stimel, D. (2009). An Examination of U.S. Phillips Curve Nonlinearity and its Relationship to the Business Cycle. Economics Bulletin, Access Econ, 29(2), 736-748.
  100. Svensson, L. E. O. (1997). Inflation Forecast Targeting: Implementing and Monitoring Inflation Targets. European Economic Review, 41(6), 1111-1146. https://doi.org/10.1016/S0014-2921(96)00055-4 Go to original source...
  101. Svensson, L. E. O. (2003). What is Wrong with Taylor Rules? Using Judgment in Monetary Policy Through Targeting Rules. Journal of Economic Literature, 41(2), 426-477. https://doi.org/10.1257/002205103765762734 Go to original source...
  102. Şahinöz, S., Atabek, A. (2016). An Alternative Micro-based Output Gap Measure for Turkey: The Capacity Utilisation Gap. Economics Letters. 143(C), 44-47. https://doi.org/10.1016/j.econlet.2016.03.008 Go to original source...
  103. Turner, D. (1995). Speed Limit and Asymmetric Inflation Effects from the Output Gap in the Major Seven Economies. OECD Economic Studies, 24, 57-87.
  104. Walsh, C. E. (2001). The Science (and Art) of Monetary Policy. Federal Reserve Bank of San Fransisco Economic Letter (May 4), 1.
  105. Walsh, C. E. (2003). Speed Limit Policies: The Output Gap and Optimal Monetary Policy. American Economic Review, 93(1), 265-78. https://doi.org/10.1257/000282803321455278 Go to original source...
  106. Whelan, K. (2005). The New-Keynesian Phillips Curve. EC4010 Notes, Topic 7.
  107. Taylor, J. B. (1980). Aggregate Dynamics and Staggered Contracts. Journal of Political Economy, 88, 1-22. Go to original source...
  108. Tsong, C. C., Lee, C. F. (2011). Asymmetric Inflation Dynamics: Evidence from Quantile Regression Analysis. Journal of Macroeconomics, 33, 668-680. https://doi.org/10.1016/j.jmacro.2011.08.003 Go to original source...
  109. Xu, Q., Niu, X., Jiang, C., Huang, X. (2015). The Phillips Curve in the US: A Nonlinear Quantile Regression Approach. Economic Modelling, 49, 186-197. http://dx.doi.org/10.1016/j.econmod.2015.04.007. Go to original source...
  110. Villavicencio, A. L., Mignon, V. (2013). The Nonlinearity of the Inflation-output Trade-off and Time-varying Price Rigidity. Working Papers, 02, CEPII research center.
  111. Yalçin Kayacan, E., Üçdoruk Birecikli, Ş. (2018). Türkiye çikti Açiğinin Filtreleme ve Ayriştirma Yöntemleriyle Tahmini. UİİİD-IJEAS, 2018 (18. EYİ Özel Sayisi), 325-338. Go to original source...
  112. Yates, A. (1998). Downward Nominal Rigidity and Monetary Policy. Bank of England Working Papers, 82, Bank of England. Go to original source...
  113. Zhang, C. S., Osborn, D. R., Kim, D. H. (2008). The New Keynesian Phillips Curve: From Sticky Inflation to Sticky Prices. Journal of Money, Credit and Banking, 40(4), 667-699. https://doi.org/10.1111/j.1538%2D4616.2008.00131.x Go to original source...
  114. Zhang. C., Murasawa, Y. (2011). Output Gap Measurement and the New Keynesian Phillips Curve for China. Economic Modelling, 28, 2462-2468. https://doi.org/10.1016/j.econmod.2011.07.003 Go to original source...

This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.