Showing 1 - 10 of 26
This paper aims at contributing to the research agenda on the sources of price stickiness, showing that the adoption of nominal price rigidity may be an optimal firms' reaction to the consumers' behavior, even if firms have no adjustment costs. With regular broadly accepted assumptions on...
Persistent link: https://www.econbiz.de/10012734827
We assess the relationship between unemployment , capacity utilization and inflation in Brazil by means of disaggregated Phillips curves Our main contribution is to consider separately the dynamics of tradable and nontradable sectors, and highlight the importance of disaggregating the roles of...
Persistent link: https://www.econbiz.de/10010726945
The literature has long agreed that the divine coincidence holds in standard New Keynesian models: the monetary authority is able to simultaneously stabilize inflation and output gap in response to preference and technology shocks. I show that the divine coincidence holds only when inflation is...
Persistent link: https://www.econbiz.de/10011042865
Persistent link: https://www.econbiz.de/10008048820
Persistent link: https://www.econbiz.de/10011158939
Persistent link: https://www.econbiz.de/10006885447
Persistent link: https://www.econbiz.de/10008478156
Persistent link: https://www.econbiz.de/10005127921
Persistent link: https://www.econbiz.de/10005339136
I assess the optimal policy to be followed by a welfare-concerned central bank when assigned an inflation target that is not necessarily welfare-optimal. I treat the inflation target as the trend inflation and I have three main contributions: (i) a welfare-based loss function fully derived under...
Persistent link: https://www.econbiz.de/10010535367