State-dependent pricing and the general equilibrium dynamics of money and output

• 成果类型: Article
• 署名作者: Dotsey, M; King, RG; Wolman, AL
• 署名单位: University of Virginia; Federal Reserve System - USA; Federal Reserve Bank - Richmond; National Bureau of Economic Research
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1162/003355399556106
• 发表日期: 1999
• 页码: 655-690
• 关键词: inflation

摘要

Economists have long suggested that nominal product prices are changed infrequently because of fixed costs. In such a setting, optimal price adjustment should depend on the state of the economy. Yet, while widely discussed, state-dependent pricing has proved difficult to incorporate into macroeconomic models. This paper develops a new, tractable theoretical state-dependent pricing framework. We use it to study how optimal pricing depends on the persistence of monetary shocks, the elasticities of labor supply and goods demand, and the interest sensitivity of money demand.