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Optimal sticky prices under rational inattention

Maćkowiak, Bartosz; Wiederholt, Mirko - 2009

information flow. When idiosyncratic conditions are more variable or more important than aggregate conditions, firms pay more …

Persistent link: https://www.econbiz.de/10011605055

Optimal Sticky Prices under Rational Inattention

Maćkowiak, Bartosz - 2009

information flow. When idiosyncratic conditions are more variable or more important than aggregate conditions, firms pay more …

Persistent link: https://www.econbiz.de/10012765187

Rational Inattention : A Review

Maćkowiak, Bartosz; Matějka, Filip; Wiederholt, Mirko - 2021

agents cannot process all available information, but they can choose which exact pieces of information to attend to. Several … important results in economics have been built around imperfect information. Nowadays, many more forms of information than ever … before are available due to new technologies, and yet we are able to digest little of it. Which form of imperfect information …

Persistent link: https://www.econbiz.de/10013222707

Sharing asymmetric tail risk : smoothing, asset prices and terms of trade

Corsetti, Giancarlo; Lipinska, Anna; Lombardo, Giovanni - 2021

Persistent link: https://www.econbiz.de/10012700479

Policy instrument choice and non-coordinated monetary in interdependent economies

Lombardo, Giovanni; Sutherland, Alan - 2004

Non-coordinated monetary policy is analysed in a stochastic two-country general equilibrium model. Non-coordinated equilibria are compared in two cases: one where policy is set in terms of state-contingent money supply rules and one where policy is set in terms of state-contingent nominal...

Persistent link: https://www.econbiz.de/10010295630

Inflation targeting rules and welfare in an asymmetric currency area

Lombardo, Giovanni - 2004

. Furthermore, we show that if information on the true extent of the asymmetries is incomplete, the symmetric rule could outperform …

Persistent link: https://www.econbiz.de/10010295631

Price rigidity, the mark-up and the dynamics of the current account

Lombardo, Giovanni - 2002

This paper shows that the degree of competition affects the current account response to nominal shocks. The mechanism hinges on the relationship between the mark-up and the degree of real rigidity of prices. In a model with intermediate goods, the degree of real rigidity increases in the markup....

Persistent link: https://www.econbiz.de/10010295731

Imperfect Competition, Monetary Policy and Welfare in a Currency Area

Lombardo, Giovanni - 2002

This paper studies the implication, in terms of welfare and monetary policy, of unequal degrees of competition across members of a currency area. We look at two ways in which the degree of competition in the market for goods can affect welfare in a currency area. One is through different average...

Persistent link: https://www.econbiz.de/10010295738

Monetary policy with model uncertainty: distribution forecast targeting

Svensson, Lars E. O.; Williams, Noah - 2005

We examine optimal and other monetary policies in a linear-quadratic setup with a relatively general form of model uncertainty, so-called Markov jump-linear-quadratic systems extended to include forward-looking variables. The form of model uncertainty our framework encompasses includes : simple...

Persistent link: https://www.econbiz.de/10010295780

Welfare implications of Calvo vs. Rotemberg pricing assumptions

Lombardo, Giovanni; Vestin, David - 2007

This paper compares the welfare implications of two widely used pricing assumptions in the New-Keynesian literature: Calvo-pricing vs. Rotemberg-pricing. We show that despite the strong similarities between the two assumptions to a first order of approximation, in general they might entail...

Persistent link: https://www.econbiz.de/10011604816