Editing Phillips curve (section)

===New Keynesian version===
The New Keynesian Phillips curve was originally derived by Roberts in 1995,<ref>{{cite journal |last=Roberts |first=John M. |year=1995 |title=New Keynesian Economics and the Phillips Curve |journal=[[Journal of Money, Credit and Banking]] |volume=27 |issue=4 |pages=975–984 |jstor=2077783 |doi=10.2307/2077783 }}</ref> and since been used in most state-of-the-art New Keynesian DSGE models like the one of Clarida, Galí, and Gertler (2000).<ref>{{cite journal |last1=Clarida |first1=Richard |last2=Galí |first2=Jordi |last3=Gertler |first3=Mark |year=2000 |title=Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory |journal=[[The Quarterly Journal of Economics]] |volume=115 |issue=1 |pages=147–180 |doi=10.1162/003355300554692 |citeseerx=10.1.1.111.7984 }}</ref><ref>{{cite book |last=Romer |first=David |year=2012 |chapter=Dynamic Stochastic General Equilibrium Models of Fluctuation |title=Advanced Macroeconomics |publisher=McGraw-Hill Irwin |location=New York |pages=312–364 |isbn=978-0-07-351137-5 |chapter-url=https://books.google.com/books?id=xTovPwAACAAJ&pg=PA312 }}</ref>
:<math>\pi_{t} = \beta E_{t}[\pi_{t+1}] + \kappa y_{t}</math>
where 
:<math>\kappa = \frac{\alpha[1-(1-\alpha)\beta]\phi}{1-\alpha}.</math> 
The current expectations of next period's inflation are incorporated as <math>\beta E_{t}[\pi_{t+1}]</math>.