Arbeitspapier
On the Output-Inflation Relationship when Price and Quantity Adjustments are Costly
A vast literature analyzes the real effects of price-adjustment costs assuming that quantity adjustments are costless. In this paper, we analyze whether the presence of quantity-adjustments costs, which presumably are significant, change the traditional results on the impact of inflation. In particular, recent findings suggest that quantity-adjustment costs may remove the linkage between output and inflation. We show that this is not the case when inflation is anticipated. On the contrary, quantity-adjustment costs may significantly amplify the consequences of price-adjustment costs.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 293
- Classification
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Wirtschaft
- Subject
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Output-inflation relationship
menu costs
quantity-adjustment costs
- Event
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Geistige Schöpfung
- (who)
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Danziger, Leif
Hansen, Claus Thustrup
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2000
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Danziger, Leif
- Hansen, Claus Thustrup
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2000