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<https://discovery.ucl.ac.uk/id/eprint/2558> <http://purl.org/dc/terms/title> "The 3-equation new keynesian model - a graphical exposition"^^<http://www.w3.org/2001/XMLSchema#string> .
<https://discovery.ucl.ac.uk/id/eprint/2558> <http://purl.org/ontology/bibo/abstract> "We develop a graphical 3-equation New Keynesian model for macroeconomic\r\nanalysis to replace the traditional IS-LM-AS model. The new graphical\r\nIS-PC-MR model is a simple version of the one commonly used by central\r\nbanks and captures the forward-looking thinking engaged in by the policy\r\nmaker. Within a common framework, we compare our model to other\r\nmonetary-rule based models that are used for teaching and policy analysis.\r\nWe show that the differences between the models centre on whether the central\r\nbank optimizes and on the lag structure in the IS and Phillips curve equations.\r\nWe highlight the analytical and pedagogical advantages of our preferred\r\nmodel. The model can be used to analyze the consequences of a wide range\r\nof macroeconomic shocks, to identify the structural determinants of the coefficients\r\nof a Taylor type interest rate rule, and to explain the origin and size of\r\nthe inflation bias."^^<http://www.w3.org/2001/XMLSchema#string> .
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