Real Wage Rigidities and Disinflation Dynamics: Calvo vs. Rotemberg Pricing

Calvo pricing implies output gains, while Rotemberg pricing implies output losses after a disinflation. Introducing real wage rigidities has opposite effects: it generates a long-lasting boom in output in Calvo, and a moderate output slump in Rotemberg.

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Year of publication:	2010
Authors:	Ascari, Guido ; Rossi, Lorenza
Publisher:	Pavia : Università degli Studi di Pavia, Dipartimento di Economia Politica e Metodi Quantitativi (EPMQ)
Subject:	Disinflation \| Sticky Prices \| Real Wage Rigidity \| Non-linear Simulations

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Series:	Quaderni di Dipartimento ; 116
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	783564562 [GVK] hdl:10419/95287 [Handle] RePEc:pav:wpaper:116 [RePEc]
Classification:	E31 - Price Level; Inflation; Deflation ; E5 - Monetary Policy, Central Banking and the Supply of Money and Credit
Source:	EconStor

Persistent link: https://www.econbiz.de/10010335275