Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/17959 
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dc.contributor.authorMash, Richarden
dc.date.accessioned2009-01-28T15:05:13Z-
dc.date.available2009-01-28T15:05:13Z-
dc.date.issued2007-
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
dc.language.isoengen
dc.publisher|aKiel Institute for the World Economy (IfW) |cKielen
dc.relation.ispartofseries|aEconomics Discussion Papers |x2007-36en
dc.subject.jelE22en
dc.subject.jelE52en
dc.subject.jelE58en
dc.subject.ddc330en
dc.subject.keywordIndexingen
dc.subject.keywordMonetary Policyen
dc.subject.keywordPhillips Curveen
dc.subject.keywordInflation Persistenceen
dc.subject.keywordMicrofoundationsen
dc.subject.stwGeldpolitiken
dc.subject.stwPhillips-Kurveen
dc.subject.stwInflationen
dc.subject.stwHysteresisen
dc.subject.stwMikroökonomische Fundierungen
dc.subject.stwBetriebliche Preispolitiken
dc.subject.stwIndexierungen
dc.subject.stwTheorieen
dc.titleEndogenous Indexing and Monetary Policy Models-
dc.typeWorking Paperen
dc.identifier.ppn558398561en
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.enen
dc.identifier.repecRePEc:zbw:ifwedp:6163en

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