The purpose of this thesis has been to estimate the New Keynesian Phillips curverelation using Norwegian data, and more precisely using survey expectations asinstruments for the expected inflation term in the NPC to see how this wouldinfluence the results. As a comparison to the survey estimates I have estimated areplication of the Galí and Gertler (1999) study.The estimations using both survey expectations and the Galí and Gertler instrumentsturned out to be significant, and with the size and sign of the coefficients as expected.Based on my estimation the Galí and Gertler instruments provide a better fit model ofthe NPC than using survey expectations, however both methods are valid to estimatethe NPC.
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