Arbeitspapier

Real effects of price stability with endogenous nominal indexation

We study a model with repeated moral hazard where financial contracts are not fully indexed to inflation because nominal prices are observed with delay as in Jovanovic & Ueda (1997). More constrained firms sign contracts that are less indexed to the nominal price and, as a result, their investment is more sensitive to nominal price shocks. We also find that the overall degree of nominal indexation increases with the uncertainty of the price level. An implication of this is that economies with higher price-level uncertainty are less vulnerable to a price shock of a given magnitude, that is, aggregate investment and output respond to a lesser degree.

Sprache
Englisch

Erschienen in
Series: Bank of Canada Working Paper ; No. 2009-16

Klassifikation
Wirtschaft
Macroeconomics: Consumption; Saving; Wealth
Price Level; Inflation; Deflation
Financial Markets and the Macroeconomy
Monetary Policy
Thema
Economic models
Monetary policy framework
Financial markets
Transmission of monetary policy
Finanzmarkt
Moral Hazard
Indexierung
Preisniveaustabilität
Schock
Transmissionsmechanismus
Theorie

Ereignis
Geistige Schöpfung
(wer)
Meh, Césaire Assah
Quadrini, Vincenzo
Terajima, Yaz
Ereignis
Veröffentlichung
(wer)
Bank of Canada
(wo)
Ottawa
(wann)
2009

DOI
doi:10.34989/swp-2009-16
Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Meh, Césaire Assah
  • Quadrini, Vincenzo
  • Terajima, Yaz
  • Bank of Canada

Entstanden

  • 2009

Ähnliche Objekte (12)