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This paper shows that price rigidity evolves in an economy populated by imperfectly rational agents who experiment with alternative rules of thumb. In the model, firms must set their prices in face of aggregate demand shocks. Their payoff depends on the level of aggregate demand, as well as on...
Persistent link: https://www.econbiz.de/10005051547
’ liquidity constraints. We also demonstrate that increasing the rate of inflation can be welfare improving when credit rationing …
Persistent link: https://www.econbiz.de/10005405820
This paper analyzes awards as a means of motivation prevalent in the scientific community, but so far neglected in the economic literature on incentives, and discusses their relationship to monetary compensation. Awards are better suited than performance pay to reward scientific tasks, which are...
Persistent link: https://www.econbiz.de/10005406082
Finland’s state-enterprise sector has been larger than in most countries and included several manufacturing companies …
Persistent link: https://www.econbiz.de/10005405945
compares price inflation before the crisis with the necessary and actual price cuts that have taken place since the outbreak of … the crisis, predicting a decade of stagnation for the south and inflation for the north. Keynesian demand policy is …
Persistent link: https://www.econbiz.de/10010877720
repression in domestic interest rates—to avoid an avalanche of foreign capital inflows that would threaten inflation and asset … could attract even more hot money inflows, the People’s Bank of China should focus on tightly stabilizing the yuan/ dollar …
Persistent link: https://www.econbiz.de/10010877868
import prices only to a small extent, it may have a substantial impact on inflation, as it exerts a sizeable impact on the …
Persistent link: https://www.econbiz.de/10010535633
economy. While about half of all studies for the United States find a significant effect of unemployment and inflation on … choice of the sample period is of crucial importance. While in the very long run we find unemployment, inflation and the …
Persistent link: https://www.econbiz.de/10010535634
The sovereign debt crisis has made it clear that central banking is more than keeping inflation low. Central banks are …
Persistent link: https://www.econbiz.de/10009294102
This study evaluates the role market competition plays in determining inflation based on sector-level data from OECD … countries. In theory, trade openness can affect inflation through changes in market competitiveness and productivity … of market competition. This study shows that inflation decreases with greater market competitiveness even after …
Persistent link: https://www.econbiz.de/10009391719