Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/3308
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dc.contributor.authorKaranassou, Marikaen_US
dc.contributor.authorSnower, Dennis J.en_US
dc.date.accessioned2009-01-28T14:30:02Z-
dc.date.available2009-01-28T14:30:02Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/3308-
dc.description.abstractIt is commonly asserted that inflation is a jump variable in the New Keynesian Phillips curve, and thus wage-price inertia does not imply inflation inertia. We show that this "inflation flexibility proposition" is highly misleading, relying on the assumption that real variables are exogenous. In a general equilibrium setting (in which real variables not only affect inflation, but are also influenced by it) the phenomenon of inflation inertia re-emerges. Under plausible parameter values, high degrees of inflation persistence (prolonged after-effects of inflation in response to temporary money growth shocks) and under-responsiveness (prolonged effects in response to permanent shocks) can arise in the context of standard wage-price staggering models.en_US
dc.language.isoengen_US
dc.publisher|aDepartment of Economics, Queen Mary College |cLondon-
dc.relation.ispartofseries|aWorking paper series, Department of Economics, Queen Mary College, London |x518en_US
dc.subject.jelE31en_US
dc.subject.jelE63en_US
dc.subject.jelE42en_US
dc.subject.jelE32en_US
dc.subject.ddc330-
dc.subject.keywordInflation persistence , Wage-price staggering , New Keynesian Phillips curve , Nominal inertia , Monetary policy , Forward-looking expectationsen_US
dc.subject.stwInflationen_US
dc.subject.stwUngleichgewichtstheorieen_US
dc.subject.stwPhillips-Kurveen_US
dc.subject.stwTheorieen_US
dc.titleInflation persistence revisiteden_US
dc.typeWorking Paperen_US
dc.identifier.ppn396014976en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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