Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/28327
Authors: 
Ascari, Guido
Ropele, Tiziano
Year of Publication: 
2009
Series/Report no.: 
Kiel Working Paper 1499
Abstract: 
When taken to examine disinflation monetary policies, the current workhorse DSGE model of business cycle fluctuations successfully accounts for the main stylized facts in terms of recessionary effects and sacrifice ratio. We complement the transitional analysis of the short-run costs with a rigorous welfare evaluation and show that, despite the long-lasting economic downturn, disinflation entails non-zero overall welfare gains.
Subjects: 
Disinflation
Sacrifice ratio
Non-linearities
JEL: 
E31
E5
Document Type: 
Working Paper

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