Sticky Prices and Indeterminacy
نویسندگان
چکیده
منابع مشابه
Sticky Prices and Indeterminacy
The aim of the present paper is to analyze the link between price rigidity and indeterminacy. This is done within a cash-in-advance economy from which we know that it exhibits indeterminacy at high degrees of relative risk aversion. I Þnd that price stickiness reduces the scope of these sunspot equilibria: sluggish price adjustment requires degrees of relative risk aversion compatible with inde...
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The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily refl ect those of the editors. Die Deutsche Bibliothek verzeichnet diese Publikation in der deutschen National-bibliografi e; detaillierte bibliografi sche Daten sind im Internet üb...
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Sticky demand – sticky nominal spending – acts as a substitute for sticky prices. In an inventorytheoretic model of the demand for money, monetary injections are offset by endogenous movements in velocity that keep nominal spending flat. When embedded in a sticky price model, this reduces the model’s reliance on implausibly large amounts of exogenous stickiness. For example: 6 months asset mark...
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This paper represents the views and analysis of the authors and should not be thought to represent those of the Bank of England or Monetary Policy Committee members. We thank an anonymous referee, Robert King and seminar participants at the Bank of England, CEPR/MMF workshop and the London Business School for comments. The Bank of England's working paper series is externally refereed.
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ژورنال
عنوان ژورنال: Journal of Money, Credit and Banking
سال: 2008
ISSN: 0022-2879,1538-4616
DOI: 10.1111/j.1538-4616.2008.00147.x