Arbeitspapier
Product quality, measured inflation and monetary policy
This paper proposes a tractable New Keynesian (NK) economy with endogenous adjustment in product quality that nests the canonical framework. Endogenous quality choice reduces the slope of the traditional NK Phillips curve and ampliffes the economy's response to productivity shocks. This leads to a less reactionary monetary policy where model misspeciffcation of imperfectly observable quality adjustments matters more for macroeconomic stabilization than the mismeasurement of those adjustments. With no misperception of product quality by the monetary authority, the principles for optimal monetary policy are, nonetheless, unchanged as the quality extensions to the canonical NK model preserve divine coincidence.
- ISBN
-
978-92-899-5264-4
- Sprache
-
Englisch
- Erschienen in
-
Series: ECB Working Paper ; No. 2680
- Klassifikation
-
Wirtschaft
Price Level; Inflation; Deflation
Business Fluctuations; Cycles
Monetary Policy
Central Banks and Their Policies
- Thema
-
Product Quality
Inflation Indexes
Monetary Policy
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Rodnyansky, Alexander
Van der Ghote, Alejandro
Wales, Daniel
- Ereignis
-
Veröffentlichung
- (wer)
-
European Central Bank (ECB)
- (wo)
-
Frankfurt a. M.
- (wann)
-
2022
- DOI
-
doi:10.2866/6355
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Rodnyansky, Alexander
- Van der Ghote, Alejandro
- Wales, Daniel
- European Central Bank (ECB)
Entstanden
- 2022
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