EconStor >
Deutsche Bundesbank, Forschungszentrum, Frankfurt am Main >
Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/27662
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorYao, Fangen_US
dc.date.accessioned2009-08-12T07:30:15Z-
dc.date.available2009-08-12T07:30:15Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/27662-
dc.description.abstractThis paper explores what can be lost when assuming price adjustment is a time - independent (memoryless) process.I derive a generalized NKPC in an optinizing model with the non- constant hazard function and trend inflation. Memory emerges in the resulting Phillips curve through the presence of lagged inflation and lagged expectations. It nests the Calvo NKPC as a limitting case in the sense that the effect of both terms are canceled out by one another under the constant-hazard assumption. Furthermore, I find lagged inflation always has negative coefficients, thereby making it impossible to interpret inflation persistence as intrinsic to the model. The numerical evaluation shows that introducing trend inflation strengthens the effects of the increasing hazard function on the inflation dynamics . The model can jointly account for persistent dynamics of inflation and output, hump-shaped impulse responses of inflation to monetary shocks, and the fact that high trend inflation leads to more persistence in inflation but not for real variables.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesDiscussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2009,08en_US
dc.subject.jelE12en_US
dc.subject.jelE31en_US
dc.subject.ddc330en_US
dc.subject.keywordIntrinsic inflation persistanceen_US
dc.subject.keywordHazard functionen_US
dc.subject.keywordNew Keynesian Phillips Curveen_US
dc.subject.stwNew-Keynesian Phillips Curveen_US
dc.subject.stwMonopolistischer Wettbewerben_US
dc.subject.stwPreisrigidit├Ąten_US
dc.subject.stwAllgemeines Gleichgewichten_US
dc.subject.stwTheorieen_US
dc.titleTime-dependent pricing and New Keynesian Phillips curveen_US
dc.typeWorking Paperen_US
dc.identifier.ppn594330467en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp1:7577-
Appears in Collections:Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank

Files in This Item:
File Description SizeFormat
200908dkp.pdf612.03 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.