Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/95293
Authors: 
Ascari, Guido
Ropele, Tiziano
Year of Publication: 
2010
Series/Report no.: 
Quaderni di Dipartimento 111
Abstract: 
When used to examine disinflation monetary policies, the current workhorse dynamic stochastic general equilibrium model of business cycle fluctuations is able to quantitatively account 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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