Modelling inflation persistence with periodicity changes in fixed and predetermined prices models

This paper studies how the length of the decision interval for a given duration of prices modifies the dynamic properties of inflation and output in various New Keynesian models. The main result is that higher frequency versions of the sticky information, overlapping contracts and hybrid sticky pric...

Full description

Saved in:
Bibliographic Details
Published inEconomic modelling Vol. 24; no. 5; pp. 823 - 838
Main Authors Ben Aïssa, Mohamed Safouane, Musy, Olivier, Pereau, Jean-Christophe
Format Journal Article
LanguageEnglish
Published Amsterdam Elsevier B.V 01.09.2007
Elsevier
Elsevier Science Ltd
SeriesEconomic Modelling
Subjects
Anti-inflation policy
Disinflation policy
Economic information
Economic models
Inflation
Inflation expectations
Inflation persistence
Inflation rate
Keynesian theory
Model periodicity
Monetary economics
Monetary models
Nominal rigidity
Prices
Studies
E31
Nominal rigidity
E52
Inflation persistence
Disinflation policy
Model periodicity
Online AccessGet full text

Cover

More Information
Summary:This paper studies how the length of the decision interval for a given duration of prices modifies the dynamic properties of inflation and output in various New Keynesian models. The main result is that higher frequency versions of the sticky information, overlapping contracts and hybrid sticky price models respectively predict higher, invariant, and lower levels of inflation persistence.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0264-9993
1873-6122
DOI:10.1016/j.econmod.2007.02.008