Darracq Pariès, Matthieu; Moyen, Stéphane - 2009
specification, we chose a stochastic
process for the perceived inflation objective of price and wage setters so that the volatility … autoregressive coefficient on the perceived inflation target, ρ
π
, to 0.99, as
1
Of course, the BEIRs are not unbiased measures of ….1
0.12
0.14
0.16
0.18
Quarters
Perceived markup shock
10 20 30 40
−0.05
0
0.05
0.1
0.15
0.2
0.25
0.3
Quarters
Perceived …