| dc.creator |
Karanassou, Marika |
|
| dc.creator |
Snower, Dennis J. |
|
| dc.date |
2004 |
|
| dc.date.accessioned |
2013-10-16T06:20:21Z |
|
| dc.date.available |
2013-10-16T06:20:21Z |
|
| dc.date.issued |
2013-10-16 |
|
| dc.identifier |
http://hdl.handle.net/10419/3308 |
|
| dc.identifier |
ppn:396014976 |
|
| dc.identifier.uri |
http://koha.mediu.edu.my:8181/xmlui/handle/10419/3308 |
|
| dc.description |
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. |
|
| dc.language |
eng |
|
| dc.publisher |
Department of Economics, Queen Mary College London |
|
| dc.relation |
Working paper series, Department of Economics, Queen Mary College, London 518 |
|
| dc.rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen |
|
| dc.subject |
E31 |
|
| dc.subject |
E63 |
|
| dc.subject |
E42 |
|
| dc.subject |
E32 |
|
| dc.subject |
ddc:330 |
|
| dc.subject |
Inflation persistence , Wage-price staggering , New Keynesian Phillips curve , Nominal inertia , Monetary policy , Forward-looking expectations |
|
| dc.subject |
Inflation |
|
| dc.subject |
Ungleichgewichtstheorie |
|
| dc.subject |
Phillips-Kurve |
|
| dc.subject |
Theorie |
|
| dc.title |
Inflation persistence revisited |
|
| dc.type |
doc-type:workingPaper |
|