Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22255
Authors: 
Trabandt, Mathias
Year of Publication: 
2003
Series/Report no.: 
SFB 373 Discussion Paper 2003,41
Abstract: 
Mankiw and Reis (2002) have proposed sticky information as an alternative to Calvo sticky prices in order to model the conventional view that i) inflation reacts with delay and gradually to a monetary policy shock, ii) announced and credible disinflations are contractionary and iii) inflation accelerates with vigorous economic activity. We develop a fully-fledged DSGE model with sticky information and compare it to Calvo sticky prices, allowing also for dynamic inflation indexation as in Christiano, Eichenbaum and Evans (2001). We find that both models do equally well in delivering the conventional view. ¨
Subjects: 
sticky information
sticky prices
inflation indexation
DSGE
JEL: 
E3
E0
Persistent Identifier of the first edition: 
Document Type: 
Working Paper
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