Partial Indexation, Trend Inflation, and the Hybrid Phillips Curve

This note proposes a full description of the Calvo price-setting model based on partial prices indexation and studies the interaction between partial indexation and trend inflation. We show that to use a hybrid version of the Phillips curve partly decreases the risks of overestimate due to the omission of trend inflation.

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Year of publication:	2004
Authors:	Sahuc, Jean-Guillaume
Institutions:	Centre d'Études des Politiques Économiques (EPEE), Université d'Évry Val d'Essonne
Subject:	Phillips curve \| inflation inertia \| trend inflation \| degree of indexation

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Extent:	application/pdf
Series:	Documents de recherche.
Type of publication:	Book / Working Paper
Notes:	Number 04-05 14 pages
Classification:	E31 - Price Level; Inflation; Deflation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010939355