Price setting under uncertainty about inflation

• 成果类型: Article
• 署名作者: Drenik, Andres; Perez, Diego J.
• 署名单位: Columbia University; New York University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2019.10.004
• 发表日期: 2020
• 页码: 23-38
• 关键词: Price setting; Informational frictions; Social value of public information

摘要

We analyze the manipulation of inflation statistics that occurred in Argentina starting in 2007 to test the relevance of informational frictions in price setting. We estimate that the manipulation of statistics was associated with a higher degree of price dispersion. This effect is analyzed in the context of a quantitative general equilibrium model in which firms use information about the inflation rate to set prices. Reporting inaccurate measures of the CPI entails significant welfare losses, especially in economies with volatile monetary policy. (C) 2019 Elsevier B.V. All rights reserved.