The Output-Inflation Trade-off When Prices Are Costly to Change
Bibliographic Data
| ID | 10182007 |
|---|---|
| Authors | Michael Parkin (0000-0002-8505-765X, Western University, corresponding author) |
| Year | 1986 |
| Volume | 94 |
| Issue | 1 |
| Pages | 200-224 |
| Publication date | 1986-02-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/261369 |
| OpenAlex | W1987228277 |
| Language | EN |
| Citations received | 8 |
| References cited | 3 |
The output-inflation trade-off is investigated in a rational expectations equilibrium economy in which costly price setting makes it inefficient for agents to vary their prices at every instant. It is shown that "sticky prices" are not some exogenous source of output fluctuation but result from the monetary policy process. An economy with slow and counterinflationary money growth exhibits staggered changes in sticky prices as assumed in some "new-Keynesian" analyses. An economy with fast money growth and a high degree of monetary accommodation exhibits either flexible prices or "bunched," frequently changing sticky prices
Accommodation · Economics · Inflation (cosmology · Keynesian economics · Macroeconomics · Monetary economics · Monetary policy · New Keynesian economics · Price level · Rational expectations · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact
Overconfidence, Underconfidence, and Welfare
Inflation, Output and Labour Productivity When Prices are Changed Infrequently
Towards a New Synthesis
Behavioral Macroeconomics and Macroeconomic Behavior
Market structure and price flexibility
Imperfect competition, menu costs and near rationality as a source of the nominal price rigidity in the new keynesian macroeconomics
How Monetary Policy can have Permanent Real Effects with Only Temporary Nominal Rigidity
Nominal Contracting and Monetary Targets – Drifting into Indexation
| Unique citing works | 8 |
|---|---|
| Citations per year | 0,22 |
| Citation span | 1990 - 2018 (29) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 6 |