Optimal monetary policy with endogenous entry and product variety

• 成果类型: Article
• 署名作者: Bilbiie, Florin O.; Fujiwara, Ippei; Ghironi, Fabio
• 署名单位: heSam Universite; Universite Pantheon-Sorbonne; Paris School of Economics; Australian National University; University of Washington; University of Washington Seattle; Center for Economic & Policy Research (CEPR); National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2014.02.006
• 发表日期: 2014
• 页码: 1-20
• 关键词: entry; Optimal inflation rate; Price stability; product variety; Ramsey-optimal monetary policy

摘要

Deviations from long-run price stability are optimal in the presence of endogenous entry and product variety in a sticky-price model in which price stability would be optimal otherwise Long-run inflation (deflation) is optimal when the benefit of variety to consumers falls short of (exceeds) the market incentive for creating that variety the desired markup; Price indexation exacerbates this mechanism. Plausible preference specifications and parameter values justify positive long-run inflation rates. However, short-run price stability (around this non-zero trend) is close to optimal, even in the presence of endogenously time-varying desired markups that distort the intertemporal allocation of resources. (C) 2014 Elsevier B.V. All rights reserved.