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https://hdl.handle.net/10419/3308
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DC Field | Value | Language |
---|---|---|
dc.contributor.author | Karanassou, Marika | en |
dc.contributor.author | Snower, Dennis J. | en |
dc.date.accessioned | 2009-01-28T14:30:02Z | - |
dc.date.available | 2009-01-28T14:30:02Z | - |
dc.date.issued | 2004 | - |
dc.identifier.uri | http://hdl.handle.net/10419/3308 | - |
dc.description.abstract | It 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 |
dc.language.iso | eng | en |
dc.publisher | |aQueen Mary University of London, Department of Economics |cLondon | en |
dc.relation.ispartofseries | |aWorking Paper |x518 | en |
dc.subject.jel | E31 | en |
dc.subject.jel | E63 | en |
dc.subject.jel | E42 | en |
dc.subject.jel | E32 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | Inflation persistence | en |
dc.subject.keyword | Wage-price staggering | en |
dc.subject.keyword | New Keynesian Phillips curve | en |
dc.subject.keyword | Nominal inertia | en |
dc.subject.keyword | Monetary policy | en |
dc.subject.keyword | Forward-looking expectations | en |
dc.subject.stw | Inflation | en |
dc.subject.stw | Ungleichgewichtstheorie | en |
dc.subject.stw | Phillips-Kurve | en |
dc.subject.stw | Theorie | en |
dc.title | Inflation persistence revisited | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 396014976 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
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