The analytics of the New Keynesian 3-equation Model

Analyses du modèle à 3 équations de la Nouvelle Macroéconomie Keynésienne

Jean-Christophe Poutineau (1) , Karolina Sobczak (2, 1) , Gauthier Vermandel (1)

1 CREM - Centre de recherche en économie et management
2 PUEB - Poznań University of Economics and Business

This paper aims at providing a self-contained presentation of the ideas and solution procedure of New Keynesian Macroeconomics models. Using the benchmark " 3 equation model " , we introduce the reader to an intuitive, static version of the model before incorporating more technical aspects associated with the dynamic nature of the model. We then discuss the relative contribution of supply, demand and policy shocks to the fluctuations of activity, inflation and interest rates, depending on the key underlying parameters of the economy.

Mots clés: Dynamic IS curve; impulse response analysis; New Keynesian Macroeconomics; New Keynesian Phillips Curve; output gap; Taylor rule

Domaines: Economies et finances; Économie et finance quantitative [q-fin]

Jean-Christophe Poutineau, Karolina Sobczak, Gauthier Vermandel. The analytics of the New Keynesian 3-equation Model. 2015. ⟨hal-01194642⟩