Arbeitspapier
Adjustment cost-driven inflation inertia
This paper shows how endogeneous inflation inertia is generated by a simple modificaton of the quadratic adjustment cost structure faced by economic agents. We derive the pertinent inflation relationships based on purely nominal rigidities and show that they always involve additional expectation terms which are absent in a Calvo-type environment. However, the structural differences do not prevent dynamic adjustment paths and theoretical moments to be similar under both rigidity assumptions. An extensive application of nominal adjustment frictions leads to a full-scale macroeconomic framework able to replicate empirical responses to an interest rate shock.
- Language
-
Englisch
- Bibliographic citation
-
Series: Jena Economic Research Papers ; No. 2010,023
- Classification
-
Wirtschaft
Price Level; Inflation; Deflation
Business Fluctuations; Cycles
Monetary Policy
- Subject
-
Inflation Dynamics
New Keynesian Phillips Curve
Business Fluctuations
Inflation
Hysteresis
Preisrigidität
Anpassungskosten
New-Keynesian Phillips Curve
Konjunktur
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Sienknecht, Sebastian
- Event
-
Veröffentlichung
- (who)
-
Friedrich Schiller University Jena and Max Planck Institute of Economics
- (where)
-
Jena
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the 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
- Sienknecht, Sebastian
- Friedrich Schiller University Jena and Max Planck Institute of Economics
Time of origin
- 2010
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