Price resetting and inertia
The Calvo scheme represents the standard specification of price resetting in the New Keynesian model. We show that using this rather than a fixed duration (Taylor) scheme matters importantly for the dynamics of the model as it allows it to generate hump-shaped response of output without an "excessive" average duration of price spells.
Year of publication: |
2010
|
---|---|
Authors: | Collard, Fabrice ; Dellas, Harris |
Published in: |
Journal of Macroeconomics. - Elsevier, ISSN 0164-0704. - Vol. 32.2010, 1, p. 28-34
|
Publisher: |
Elsevier |
Keywords: | Price resetting Sticky prices Inflation-Output dynamics |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
The great inflation of the 1970s
Collard, Fabrice, (2004)
-
Collard, Fabrice, (2000)
-
Exchange rate systems and macroeconomic stability
Collard, Fabrice, (2001)
- More ...