Artikel
Price Dispersion and the Costs of Inflation
The new Keynesian literature typically makes the assumption that firms always have to satisfy demand, which is at odds with profit‐maximizing behavior under Calvo pricing when long‐run inflation is positive. Our model, which relaxes this assumption, predicts that inflation causes a substantially smaller loss in effective aggregate productivity compared to a benchmark model without the possibility of rationing. Moreover, under positive inflation, firms choose smaller markups over marginal costs in our model than in the benchmark model. As a result, our analysis suggests that the standard new Keynesian model may exaggerate the welfare costs of inflation.
- Sprache
-
Englisch
- Erschienen in
-
Journal: Journal of Money, Credit and Banking ; ISSN: 1538-4616 ; Volume: 54 ; Year: 2021 ; Issue: 2-3 ; Pages: 459-491 ; Hoboken, USA: Wiley Periodicals, Inc.
- Klassifikation
-
Wirtschaft
- Thema
-
new Keynesian model
optimal inflation target
trend inflation
welfare costs of inflation
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hahn, Volker
- Ereignis
-
Veröffentlichung
- (wer)
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Wiley Periodicals, Inc.
- (wo)
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Hoboken, USA
- (wann)
-
2021
- DOI
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doi:10.1111/jmcb.12870
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Hahn, Volker
- Wiley Periodicals, Inc.
Entstanden
- 2021
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