Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82582
Authors: 
Söderberg, Johan
Year of Publication: 
2009
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2009:19
Abstract: 
Staggered prices are a fundamental building block of New Keynesian dynamic stochastic general equilibrium models. In the standard model, prices are uniformly staggered but recent empirical evidence suggest that deviations from uniform staggering are common, This paper analyzes how synchronization of price changes affects the response to monetary policy shocks. I find that even large deviations from uniform staggering have small effects on the response in output. Aggregate dynamics in a model of uniform staggering may serve well as an approximation to a more complicated model with some degree of synchronization in price setting.
Subjects: 
Price setting
Staggering
Synchronization
Persistence
JEL: 
E31
E32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
470.64 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.