Trend Inflation and Firms Price-Setting: Rotemberg Versus Calvo

• 成果类型: Article
• 署名作者: Ascari, Guido; Rossi, Lorenza
• 署名单位: University of Pavia
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/j.1468-0297.2012.02517.x
• 发表日期: 2012
• 页码: 1115-1141
• 关键词: optimal monetary-policy; real wage rigidities; staggered prices; phillips-curve; sticky prices; persistence; approximation; disinflation; distortions; beliefs

摘要

We compare the Calvo and Rotemberg price-setting mechanisms in a New Keynesian model with trend inflation. We show that: the long-run relationship between inflation and output is positive in Rotemberg and negative in Calvo; the dynamics of the two models differ even to a first-order approximation; positive trend inflation enlarges the determinacy region in the Rotemberg model, whereas it shrinks it in the Calvo model; the responses of output and inflation to technology shocks are amplified by trend inflation in Calvo, whereas they are dampened in Rotemberg; the two models imply differing non-linear adjustments after a disinflation.