Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19002
Authors: 
Danziger, Leif
Year of Publication: 
2005
Series/Report no.: 
CESifo Working Paper 1538
Abstract: 
With fixed costs of price and quantity adjustment, output effects of inflation depend on the elasticity of the firm's marginal real revenue. If the elasticity always exceeds minus unity, then output decreases with inflation, while if the elasticity is always less than minus unity, then output increases with inflation. In the special case that the elasticity always equals minus unity, then output is independent of inflation. This is the case if demand is derived from a logquadratic utility function.
JEL: 
E31
Document Type: 
Working Paper

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