Arbeitspapier
Stabilisation bias in monetary policy under endogenous price stickiness
This paper investigates the consequences of introducing endogenous price stickiness into a standard monetary policy model.We find that the modification reduces the optimal degree of inflation stabilization to which the central bank should commit.The reason is that less inflation stabilization encourages firms to review their prices more frequently.The economy becomes more flexible and the Phillips-curve tradeoff is improved, making it easier for the central bank to control inflation.This reduces, and may even reverse, the stabilization bias that is present in models with exogenous price stickiness and that recommends that the central bank generally commit to tighter stabilization of inflation than it would in a discretionary policy regime.
- ISBN
-
951-686-707-3
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Finland Discussion Papers ; No. 4/2001
- Klassifikation
-
Wirtschaft
- Thema
-
price stickiness
monetary policy
stabilization bias
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Ellison, Martin
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Finland
- (wo)
-
Helsinki
- (wann)
-
2001
- 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
- Ellison, Martin
- Bank of Finland
Entstanden
- 2001
Ähnliche Objekte (12)
The interaction of monetary and macroprudential policies in economic stabilisation
Fiscal policy: Coordination, discipline and stabilisation
The rigidity bias
Monetary policy in a bipolar international monetary system
Monetary policy for smoothing real fluctuations? Assessing Finnish monetary autonomy
Endogenous technology, scarring and fiscal policy
Effects of the supply-side channel on stabilisation properties of policy rules
Monetary policy delegation, labour market structure and fiscal-monetary policy coordination
Neo-Fisherian monetary policy
Monetary policy in transition: Essays on monetary policy transmission mechanism in China
Does monetary union reduce employment?
A model of common monetary policy
The interaction of monetary and macroprudential policies in economic stabilisation
Fiscal policy: Coordination, discipline and stabilisation
The rigidity bias
Monetary policy in a bipolar international monetary system
Monetary policy for smoothing real fluctuations? Assessing Finnish monetary autonomy
Endogenous technology, scarring and fiscal policy
Effects of the supply-side channel on stabilisation properties of policy rules
Monetary policy delegation, labour market structure and fiscal-monetary policy coordination
Neo-Fisherian monetary policy
Monetary policy in transition: Essays on monetary policy transmission mechanism in China
Does monetary union reduce employment?
A model of common monetary policy
The interaction of monetary and macroprudential policies in economic stabilisation
Fiscal policy: Coordination, discipline and stabilisation
The rigidity bias
Monetary policy in a bipolar international monetary system
Monetary policy for smoothing real fluctuations? Assessing Finnish monetary autonomy
Endogenous technology, scarring and fiscal policy
Effects of the supply-side channel on stabilisation properties of policy rules
Monetary policy delegation, labour market structure and fiscal-monetary policy coordination
Neo-Fisherian monetary policy
Monetary policy in transition: Essays on monetary policy transmission mechanism in China
Does monetary union reduce employment?