Monetary equilibria with monopolistic competition and sticky prices

Arbeitspapier

We consider a cash-in-advance economy under uncertainty in which monetary policy sets either short-term nominal interest rates or money supplies. We show that both the initial price level and the distribution of the inflation rate up to its expectation are indeterminate, regardless of the degree of competition or the flexibility of prices in commodity markets. This indeterminacy is not related to the stability of a deterministic steady state.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 2002-25

Klassifikation und Themen

• Klassifikation: Wirtschaft ; General Equilibrium and Disequilibrium: General ; Price Level; Inflation; Deflation ; Money and Interest Rates: General ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General
• Thema: sticky prices ; monopolistic competition ; monetary policy ; uncertainty ; indeterminacy. ; Cash-in-Advance-Modell ; Monopolistischer Wettbewerb ; Preisrigidität ; Geldpolitik ; Theorie ; Gleichgewicht

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Nakajima, Tomoyuki ; Polemarchakis, Herakles
• Ereignis: Veröffentlichung
• (wer): Brown University, Department of Economics
• (wo): Providence, RI
• (wann): 2002

Weitere Informationen

• Handle: http://hdl.handle.net/10419/80213
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ