ON THE TIMING OF PRODUCTION DECISIONS IN MONETARY ECONOMIES

• 成果类型: Article
• 署名作者: Anbarci, Nejat; Dutu, Richard; Sun, Ching-Jen
• 署名单位: Durham University; Universite PSL; Universite Paris-Dauphine; Centre National de la Recherche Scientifique (CNRS); Institut de Recherche pour le Developpement (IRD); Laboratoire dEconomie de Dauphine LEDa; Deakin University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12359
• 发表日期: 2019
• 页码: 447-472
• 关键词: search; money; inflation; welfare; prices; equilibrium; POLICY; MODEL

摘要

In most macroeconomic models inflation tends to be harmful. In this article, we show that by simply changing the timing of production decisions by firms from on demand to in advance, some inflation can boost welfare as long as goods are sufficiently perishable. The main conclusion from this research is that by effectively hiding the strategic interaction between supply and demand, assuming production on demand is not without loss of generality.