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dc.contributor.authorMash, Richarden_US
dc.date.accessioned2009-01-28T15:05:13Z-
dc.date.available2009-01-28T15:05:13Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/17959-
dc.description.abstractModels in which firms use a rule of thumb or partial indexing in price setting are prominent in the recent monetary policy literature. The extent to which these firms adjust their prices to lagged inflation has been taken as fixed. We consider the implications of firms choosing the optimal degree of indexation so these simple pricing rules deliver prices as close as possible to those which would be chosen optimally. We find that the degree of indexation depends on the extent of persistence in the economy such that models with constant indexation are vulnerable to the Lucas critique. We also study the interactions between firms? price setting and the macroeconomic environment finding that, for the models which appear most plausible on microeconomic grounds, the Nash equilibrium between firms and the policy maker is characterised by zero indexation and zero macroeconomic persistence.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kiel-
dc.relation.ispartofseriesEconomics Discussion Papers / Institut für Weltwirtschaft 2007-36en_US
dc.subject.jelE22en_US
dc.subject.jelE52en_US
dc.subject.jelE58en_US
dc.subject.ddc330en_US
dc.subject.keywordIndexingen_US
dc.subject.keywordMonetary Policyen_US
dc.subject.keywordPhillips Curveen_US
dc.subject.keywordInflation Persistenceen_US
dc.subject.keywordMicrofoundationsen_US
dc.subject.stwGeldpolitiken_US
dc.subject.stwPhillips-Kurveen_US
dc.subject.stwInflationen_US
dc.subject.stwHysteresisen_US
dc.subject.stwMikroökonomische Fundierungen_US
dc.subject.stwBetriebliche Preispolitiken_US
dc.subject.stwIndexierungen_US
dc.subject.stwTheorieen_US
dc.titleEndogenous Indexing and Monetary Policy Modelsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn558398561en_US
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.en-
dc.identifier.repecRePEc:zbw:ifwedp:6163-
Appears in Collections:Economics: The Open-Access, Open-Assessment E-Journal - Discussion Papers

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