Sticky Prices vs . Sticky Information
نویسندگان
چکیده
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 über: Abstract This paper empirically compares sticky-price and sticky-information Phillips curves considering infl ation dynamics in six countries and Japan). We evaluate the models' abilities to match empirical second moments of infl ation. Under baseline calibrations, the two models perform similarly in almost all countries. Under estimated parametrizations, sticky information performs better in France while sticky prices dominate in the UK and Germany. Sticky prices match unconditional moments of infl ation dynamics better while sticky information is more successful in matching co-movement of infl ation with demand. Both models' performances worsen where infl ation dynamics diff er from the US benchmark.
منابع مشابه
Sticky Prices vs. Sticky Information: A Cross-Country Study of Inflation Dynamics
This paper compares sticky-price and sticky-information Phillips curves empirically considering inflation dynamics in eleven countries (the G7 and Scandinavia). We evaluate the models‘ abilities to match empirical second moments of inflation. Although overall model performance is similar, there is a strong systematic pattern in model performance by moment type. Sticky prices match unconditional...
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