Inflation, Output and Labour Productivity When Prices are Changed Infrequently
Bibliographic Data
| ID | 9726635 |
|---|---|
| Authors | Jerzy D Konieczny, Jerzy Konieczny (corresponding author) |
| Year | 1990 |
| Volume | 57 |
| Issue | 226 |
| Pages | 201 |
| Publication date | 1990-05-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2554160 |
| OpenAlex | W2001497781 |
| Language | EN |
| References cited | 8 |
When prices are changed infrequently, the effect of inflation on output depends on the form of profit and demand functions. This paper provides a general taxonomy. At small inflation rates, output falls (rises; stays the same) if the demand function is concave (convex; linear) in terms of the log of real price. This holds when the frequency of price changes is fixed (in case of a catalogue firm) as well as when it is chosen optimally (in case of a menu cost firm), with fixed and variable price adjustments costs. With some specifications, inflation increases output, but reduces labor productivity. Copyright 1990 by The London School of Economics and Political Science
Econometrics · Economics · Fixed cost · Inflation (cosmology) · Macroeconomics · Microeconomics · Monetary economics · Productivity · Profit (economics) · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact
Small Menu Costs and Large Business Cycles
Money and Economic Growth
Fairness and the Assumptions of Economics
Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule
The Output-Inflation Trade-off When Prices Are Costly to Change
Stabilizing Powers of Monetary Policy under Rational Expectations
A Further Exploration in the Theory of Exchange Rate Regimes
Price Adjustment Costs and the Output-Inflation Trade-off
| Citation velocity | historical |
|---|---|
| Highly cited | No |