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.

MoreLess

Year of publication:	2010-07
Authors:	Ascari, Guido ; Rossi, Lorenza
Institutions:	Dipartimento di Scienze Economiche e Aziendali, Università degli Studi di Pavia
Subject:	Disinflation \| Sticky Prices \| Real Wage Rigidity \| Non-linear Simulations

More details

Extent:	application/pdf
Series:	Quaderni di Dipartimento.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 116 11 pages
Classification:	E31 - Price Level; Inflation; Deflation ; E5 - Monetary Policy, Central Banking and the Supply of Money and Credit
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009651077