Showing 1 - 10 of 1,143
. Whereas our methodology is general, we focus on an extended macro-model with unobservable processes for the inflation target … inflation target dominates the variation in the 'level factor' whereas monetary policy shocks dominate the variation in the …
Persistent link: https://www.econbiz.de/10005136692
We develop and estimate a structural model of inflation that allows for a fraction of firms that use a backward looking … measures of marginal cost as the relevant determinant of inflation, as the theory suggests, instead of an ad-hoc output gap …. Real marginal costs are a significant and quantitatively important determinant of inflation. Backward looking price setting …
Persistent link: https://www.econbiz.de/10005791238
This paper estimates the NAIRU (standing for the Non-Accelerating Inflation Rate of Unemployment) as a parameter that … varies over time. The NAIRU is the unemployment rate that is consistent with a constant rate of inflation. Its value is … determined in an econometric model in which the inflation rate depends on its own past values (‘inertia’), demand shocks proxied …
Persistent link: https://www.econbiz.de/10005123935
This paper models Chinese inflation using an output gap Phillips curve. Inflation modelling for the world’s sixth … curve for China and show that the output gap, the exchange rate, and inflation expectations play important roles in … explaining inflation. We adjust for structural change in the economy where possible and estimate regressions for rolling sample …
Persistent link: https://www.econbiz.de/10005656372
-neutrality; leads to a strong positive correlation between inflation and output; and contributes significantly to output volatility. We … find, however, that this increased volatility arises mostly at the higher than business cycle frequencies; leads to lower …, but especially over the business cycle. As noted by Chari, Kehoe and McGratten (1996) this failure of exogenous price …
Persistent link: https://www.econbiz.de/10005662388
The Calvo contract Phillips Curve is widely indexed for general inflation, using either core inflation or other … that optimal indexation would by contrast use the rational expectation of inflation. If this scheme is implemented, the …
Persistent link: https://www.econbiz.de/10005792519
We study optimal price setting by a monopolist in an infinite horizon model with stochastic costs, moderate inflation … steady state short-run Phillips curve implies that the output loss associated with a small negative inflation surprise is … about twice as large as the output gain associated with a small positive inflation surprise. …
Persistent link: https://www.econbiz.de/10005123623
-term inflation is derived from the dynamic stochastic general equilibrium (DSGE) model with state-dependent pricing developed by …-type price-setting as a special case. It describes current inflation as a function of lagged inflation, expected future inflation … find that current inflation depends positively on its own lagged values giving rise to intrinsic persistence as a source of …
Persistent link: https://www.econbiz.de/10005124007
We reformulate the Smets-Wouters (2007) framework by embedding the theory of unemployment proposed in Galí (2011a,b). We estimate the resulting model using postwar U.S. data, while treating the unemployment rate as an additional observable variable. Our approach overcomes the lack of...
Persistent link: https://www.econbiz.de/10009024487
Modern neo-Keynesian, new classical, and real business cycle models typically differ in the degree to which they …-neutrality of money and the `Fisher effect' of inflation on interest rates. …
Persistent link: https://www.econbiz.de/10005666523