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This paper proposes a tractable New Keynesian (NK) economy with endogenous adjustment in product quality that nests the canonical framework. Endogenous quality choice reduces the slope of the traditional NK Phillips curve and amplifies the economy’s response to productivity shocks. This leads...
Persistent link: https://www.econbiz.de/10014080687
This paper proposes a tractable New Keynesian (NK) economy with endogenous adjustment in product quality that nests the canonical framework. Endogenous quality choice reduces the slope of the traditional NK Phillips curve and ampliffes the economy's response to productivity shocks. This leads to...
Persistent link: https://www.econbiz.de/10013277166
In this paper, the authors propose a measure of underlying inflation for Canada obtained from estimating a monthly … distort the signal in many other measures of underlying inflation, and appears to capture price movements that are indicative … measures of underlying inflation monitored by the Bank of Canada. …
Persistent link: https://www.econbiz.de/10010188184
inflation index indeed has a forward-looking component, as it has favorable inflation forecasting properties on the policy … suggest that the sticky price inflation index is a useful indicator for inflation targeting central banks. ….e. whose price changes rarely) contain more information about medium term inflation developments than those of flexible price …
Persistent link: https://www.econbiz.de/10009760587
variable as some sort of average price. Instead it represents some price index indicating the average of the individual items …' price changes between the period considered and some base period. The Laspeyres and the Paasche index are cited as the best … to that of the base period. It is shown that a wide range of index formulas can be interpreted in this way, including the …
Persistent link: https://www.econbiz.de/10010356094
In order to provide information concerning the significant contributions to price index theory made by Moritz Wilhelm … personal and professional life. He was the first to formulate the unit value index as well as the Laspeyres and Paasche price … indices. These three indices are the key for the official inflation measurements that are made around the world today. …
Persistent link: https://www.econbiz.de/10010356084
multilateral index number methods for computing month-to-month inflation. … prices and quantities that national statistical institutes can use to produce more accurate, timely, measures of inflation …
Persistent link: https://www.econbiz.de/10014419259
How much does quality adjustment matter in measuring consumer price inflation? To address this question, we use … inflation only by 0.06 percentage points, which is balanced out by an increase due to quantity adjustment (e.g. a smaller … deriving the distribution of member states' cumulative inflation rates for typical quality-adjusted products. Our macro …
Persistent link: https://www.econbiz.de/10013547956
How much does quality adjustment matter in measuring consumer price inflation? To address this question, we use … inflation only by 0.06 percentage points, which is balanced out by an increase due to quantity adjustment (e.g. a smaller … deriving the distribution of member states’ cumulative inflation rates for typical quality-adjusted products. Our macro …
Persistent link: https://www.econbiz.de/10013463191
In this paper we investigate dynamics of global inflation and short-run inflation expectations. We estimate a global … inflationary pressure that could drive up inflation expectations: domestic aggregate demand and supply shocks as well as a global … increase in oil price inflation. Our results indicate that inflation expectations tend to increase as inflation accelerates …
Persistent link: https://www.econbiz.de/10012907659