June 10, 2004

The Phillips Curve Data Revisited

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Posted by bparke at 10:12 PM

OEQ

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One could even consider constructing a portfolio that yields arbitrage profits. The options prices should adjust to eliminate arbitrage profits.

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We could also derive the IS curve using equations.

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This would be the way to go if we wanted estimate the parameters and make specific numerical predictions. We could also increase the complexity of our analysis.

Posted by bparke at 09:44 PM