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dc.contributor.authorBonomo, Marcoen_US
dc.contributor.authorCarvalho, Carlosen_US
dc.date.accessioned2010-04-30en_US
dc.date.accessioned2012-08-17T14:33:11Z-
dc.date.available2012-08-17T14:33:11Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/60772-
dc.description.abstractThe real effects of an imperfectly credible disinflation depend critically on the extent of price rigidity. In this paper, we examine how credibility affects the outcome of a disinflation in a model with endogenous time-dependent pricing rules. Both the endogenous initial degree of price rigidity and changes in the duration of price spells during disinflation play an important role in explaining the effects of imperfect credibility. We initially consider the costs of disinflation when the degree of credibility is fixed, and then allow agents to use Bayes' rule to update beliefs about the 'type' of monetary authority that they face. In both cases, the interaction between the endogeneity of time-dependent rules and imperfect credibility increases the output costs of disinflation. The pattern of the output response is more realistic in the case with learning.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of New York New York, NYen_US
dc.relation.ispartofseriesStaff Report, Federal Reserve Bank of New York 355en_US
dc.subject.jelE31en_US
dc.subject.jelE52en_US
dc.subject.ddc330en_US
dc.subject.keywordDisinflationen_US
dc.subject.keywordoptimal price settingen_US
dc.subject.keywordendogenous time-dependent pricingen_US
dc.subject.stwInflationsbekämpfungen_US
dc.subject.stwPreisrigiditäten_US
dc.subject.stwTheorieen_US
dc.titleImperfectly credible disinflation under endogenous time-dependent pricingen_US
dc.typeWorking Paperen_US
dc.identifier.ppn587565020en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Staff Reports, Federal Reserve Bank of New York

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