Estimated Open Economy New Keynesian Phillips Curves for the G7

Table 1:

GMM Estimates for the G-7 (Mark-up=

:10%)

β

α

ω

P

J-test

M1

0.90*

0.54*

0.30*

n/a

9.59

USA

M2

0.87*

0.54*

0.27*

1.38**

9.26

M3

0.90*

0.55*

0.30*

1.00

9.42

M4

0.95*

0.63*

0.36*

0.33

9.36

M1

0.94*

0.66*

0.28*

n/a

7.94

CAN

M2

0.94*

0.73*

0.29*

1.23

7.90

M3

0.95*

0.74*

0.30*

1.00

7.99

M4

0.96*

0.77*

0.32*

0.33

8.05

M1

0.81*

0.56*

0.06**

n/a

9.23

GBR

M2

0.86*

0.60*

0.07**

0.06

9.27

M3

0.83*

0.59*

0.07**

1.00

9.43

M4

0.85*

0.59*

0.07**

0.33

9.36

M1

0.94*

0.69*

0.08*

n/a

7.90

FRA

M2

0.94*

0.75*

0.09*

2.57

7.51

M3

0.94*

0.72*

0.08*

1.00

7.76

M4

0.94*

0.71*

0.08*

0.33

7.68

M1

0.80*

0.87*

0.22*

n/a

8.41

DEU

M2

0.66*

0.87*

0.20*

-6.83

8.64

M3

0.77*

0.83*

0.21*

1.00

8.97

M4

0.76*

0.78*

0.18*

0.33

8.85

M1

0.80*

0.51*

0.39*

n/a

9.95

ITA

M2

0.81*

0.56*

0.42*

1.26

9.99

M3

0.81*

0.55*

0.43*

1.00

10.0

M4

0.89*

0.61*

0.50*

0.33

9.93

M1

0.80*

0.67*

0.29*

n/a

10.2

JPN

M2

0.65*

0.63*

0.30*

-0.83

9.48

M3

0.81*

0.70*

0.30*

1.00

10.1

M4

0.76*

0.60*

0.27*

0.33

10.2