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Is increased price flexibility stabilizing? : redux

Bhattarai, Saroj; Eggertsson, Gauti B.; Schoenle, Raphael - 2012

We study the implications of increased price flexibility on aggregate output volatility in a dynamic stochastic general equilibrium (DSGE) model. First, using a simplified version of the model, we show analytically that the results depend on the shocks driving the economy and the systematic...

Persistent link: https://www.econbiz.de/10009521652

What Drives Inflation in the Major OECD Economies?

Moccero, Diego; Watanabe, Shingo; Cournède, Boris - Economics Department, Organisation de Coopération et … - 2011

This paper presents an empirical analysis of the determinants of inflation in the United States, Japan, the euro area and the United Kingdom, focusing on the role of resource utilisation, inflation expectations, inflation persistence and imported inflation. It also includes a cross-sectional...

Persistent link: https://www.econbiz.de/10009249779

Optimal trend inflation

Adam, Klaus; Weber, Henning - 2017

We present a sticky-price model incorporating heterogeneous firms and systematic firm-level productivity trends. Aggregating the model in closed form, we show that it delivers radically different predictions for the optimal inflation rate than canonical sticky price models featuring homogenous...

Persistent link: https://www.econbiz.de/10011712837

Optimal trend inflation

Adam, Klaus; Weber, Henning - 2018

Sticky price models featuring heterogeneous firms and systematic firm-level productivity trends deliver radically different predictions for the optimal inflation rate than their popular homogenous-firm counterparts: (1) the optimal steady-state inflation rate generically differs from zero and...

Persistent link: https://www.econbiz.de/10011845313

Optimal trend inflation

Adam, Klaus; Weber, Henning - 2017

We present a sticky-price model incorporating heterogeneous Firms and systematic firm-level productivity trends. Aggregating the model in closed form, we show that it delivers radically different predictions for the optimal inflation rate than canonical sticky price models featuring homogenous...

Persistent link: https://www.econbiz.de/10011755763

Monetary policy rules and oil price shocks

Kamps, Christophe - 2002

Persistent link: https://www.econbiz.de/10013261171

Monetary policy rules and oil price shocks

Kamps, Christophe; Pierdzioch, Christian - 2002

This paper studies the relative performance of alternative monetary policy rules in the presence of oil price shocks in a small open economy optimizing model. Our analysis shows that it is important to distinguish between alternative price indices (CPI, core CPI, and GDP deflator) when modeling...

Persistent link: https://www.econbiz.de/10011474645

Lessons from History for Successful Disinflation

Romer, Christina; Romer, David - National Bureau of Economic Research - 2024

Why do some attempts at disinflation lead to substantial reductions in inflation while others do not? We investigate … this question in the context of the Federal Reserve's attempts at disinflation since World War II. Our central finding is … disinflation at the start of its attempts. In episodes where its commitment was high, there were significant declines in inflation …

Persistent link: https://www.econbiz.de/10014635629

Downward wage rigidity and optimal steady-state inflation

Fagan, Gabriel; Messina, Julián - 2009

This paper examines the impact of downward wage rigidity (nominal and real) on optimal steady-state inflation. For this purpose, we extend the workhorse model of Erceg, Henderson and Levin (2000) by introducing asymmetric menu costs for wage setting. We estimate the key parameters by simulated...

Persistent link: https://www.econbiz.de/10003832636

Sequential bargaining in a New Keynesian model with frictional unemployment and staggered wage negotiation

De Walque, Gregory; Pierrard, Olivier; Sneessens, Henri R. - 2009

Persistent link: https://www.econbiz.de/10003809217