Search Results - subject:"Inflation persistence"

The role of real wage rigidity and labor market frictions for unemployment and inflation dynamics

Christoffel, Kai; Linzert, Tobias - Deutsche Bundesbank - 2006

In this paper we incorporate a labor market with matching frictions and wage rigidities into the New Keynesian business cycle model. In particular, we analyze the effect of a monetary policy shock and investigate how labor market frictions affect the transmission process of monetary policy. The...

Persistent link: https://www.econbiz.de/10005083106

Inflation persistence and price-setting behaviour in the euro area : a summary of the Inflation Persistence Network evidence

Altissimo, Filippo; Ehrmann, Michael; Smets, Frank - Nationale Bank van België/Banque national de Belqique (BNB) - 2006

This paper provides a summary of current knowledge on inflation persistence and price stickiness in the euro area …, based on research findings that have been produced in the context of the Inflation Persistence Network. The main findings … are: i) Under the current monetary policy regime, the estimated degree of inflation persistence in the euro area is …

Persistent link: https://www.econbiz.de/10005060038

Sticky Information Phillips Curves: European Evidence

Döpke, Jörg; Dovern, Jonas; Fritsche, Ulrich; … - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2006

We estimate the sticky information Phillips curve model of Mankiw and Reis (2002) using survey expectations of professional forecasters from four major European economies. Our estimates imply that inflation expectations in France, Germany and the United Kingdom are updated about once a year, in...

Persistent link: https://www.econbiz.de/10005068908

Targeting Rules with Intrinsic Persistence and Endogenous Policy Inertia.

Hanson, Michael S.; Kapinos, Pavel - Economics Department, Wesleyan University - 2006

We investigate the optimality of monetary policy targeting rules in a macroeconomic model based on explicit micro-foundations for intrinsic persistence in inflation and real output. For the corresponding social welfare loss function to be minimized by the central bank, inertia arises...

Persistent link: https://www.econbiz.de/10005649742

Dynamics and monetary policy in a fair wage model of the business cycle

Croix, David de la; Walque, Gregory de; Wouters, Rafael - Nationale Bank van België/Banque national de Belqique (BNB) - 2006

other sources of sluggishness to explain the observed high inflation persistence. Second, we confront empirically our fair …

Persistent link: https://www.econbiz.de/10005031942

Firm-specific production factors in a DSGE model with Taylor price setting

Walque, Gregory de; Smets, Frank; Wouters, Raf - Nationale Bank van België/Banque national de Belqique (BNB) - 2006

This paper compares the Calvo model with a Taylor contracting model in the context of the Smets-Wouters (2003) Dynamic Stochastic General Equilibrium (DSGE) model. In the Taylor price setting model, we introduce firm-specific production factors and discuss how this assumption can help to reduce...

Persistent link: https://www.econbiz.de/10005031948

Optimising Microfoundations for Inflation Persistence

Mash, Richard - Society for Computational Economics - SCE - 2006

microeconomic data on price changing behaviour from the ECBâ€™s Inflation Persistence Network, alongside earlier firm surveys for … â€œstickierâ€ sectors. When calibrated to micro data the model predicts inflation persistence comparable to that in …

Persistent link: https://www.econbiz.de/10005132602

Euro area inflation persistence in an estimated nonlinear

Amisano, Gianni; Tristani, Oreste - Society for Computational Economics - SCE - 2006

We estimate the approximate nonlinear solution of a small DSGE model using Bayesian methods. Our results, based on euro area data, suggest that this approch delivers sharper inference compared to the estimation of the linearised solution. The nonlinear model can also account for richer economic...

Persistent link: https://www.econbiz.de/10005132616

Comparison of pricing behaviour of firms in the euro area and Estonia

Dabušinskas, Aurelijus; Randveer, Martti - Eesti Pank - 2006

In this paper, we review the price setting survey of Estonian firms and compare our findings with the results of similar research in the euro area summarized by Fabiani et al. (2005). Generally, the price setting patterns that emerge from our survey are quite similar to those in the euro zone....

Persistent link: https://www.econbiz.de/10005187647

Inflation persistence in Belgium

Collin, M. - In: Economic Review (2006) II, pp. 23-33

The article deals with inflation dynamics in Belgium, and in particular the degree of inflation persistence. It also … current monetary policy regime, the degree of aggregate inflation persistence is relatively modest. The results also showed …

Persistent link: https://www.econbiz.de/10009357710