MENU COSTS AND PHILLIPS CURVES Mikhail
نویسندگان
چکیده
We have benefitted from discussions with Ariel Burstein, Ricardo Caballero, V.V. Chari, Larry Christiano, Larry Jones, Boyan Jovanovic, Patrick Kehoe, Timothy Kehoe, Bob King, Pete Klenow, Oleksiy Kryvtsov, Ellen McGrattan, Thomas Philippon, Thomas Sargent, Nancy Stokey, Julia Thomas, and Aleh Tsyvinski. Participants in seminars at Chicago, Minnesota, the Federal Reserve Bank of Minneapolis, the CEPR conference “The Phillips Curve Revisited” and the NBER Economic Fluctuations and Growth meeting provided helpful criticism. The views expressed herein are those of the authors and not necessarily those of the National Bureau of Economic Research.
منابع مشابه
Menu Costs and Phillips Curves
This paper develops a model of a monetary economy in which individual firms are subject to idiosyncratic productivity shocks as well as general inflation. Sellers can change price only by incurring a real “menu cost.” We calibrate this cost and the variance and autocorrelation of the idiosyncratic shock using a new U.S. data set of individual prices due to Klenow and Kryvtsov. The prediction of...
متن کاملPhillips curves with observation and menu costs ∗
We compute the response of output to a monetary shock in a general equilibrium model in which firms set prices subject to a menu cost as well a costly observation of the state. We consider economies that are observationally equivalent with respect to the average frequency and size of price adjustments, and show that these economies respond differently to monetary shocks, depending on the size o...
متن کاملReconsidering the Natural Rate Hypothesis in a New Keynesian Framework
This paper formulates a stylized New Keynesian model in which each individual firm can select the frequency of its price adjustments, and we demonstrate that the endogeneity of the contract structure has a dramatic impact on the magnitude of the aggregate effects of steady-state inflation. We start by analyzing the exact nonlinear properties of a benchmark economy with exogenous contract durati...
متن کاملMenu Costs and Asymmetric Price Adjustment
We study optimal price setting by a monopolist in an in nite horizon model with stochastic costs, moderate ination, and costly price adjustment. For realistic parameters, chosen to replicate observed frequencies of price changes, the model ts numerically several empirical regularities. In particular, price reductions are larger but less frequent than price increases, and prices respond consid...
متن کاملWage and Price Phillips Curves An empirical analysis of destabilizing wage-price spirals
In this paper we introduce a small Keynesian model of economic growth which is centered around two advanced types of Phillips curves, one for money wages and one for prices, both being augmented by perfect myopic foresight and supplemented by a measure of the medium-term inflationary climate updated in an adaptive fashion. The model contains two potentially destabilizing feedback chains, the so...
متن کامل