A Phillips curve with an Ss foundation

• 成果类型: Article
• 署名作者: Gertler, Mark; Leahy, John
• 署名单位: New York University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/589522
• 发表日期: 2008
• 页码: 533-572
• 关键词: menu costs; inflation dynamics; monetary-policy; money; rigidities; prices; MODEL

摘要

We develop an analytically tractable Phillips curve based on state-dependent pricing. We consider a local approximation around a zero inflation steady state and introduce infrequent idiosyncratic shocks. The resulting Phillips curve is a simple variant of the conventional time-dependent Calvo formulation with important differences. First, the model is able to match the micro evidence on the magnitude and timing of price adjustments. Second, our state-dependent model exhibits greater flexibility in the aggregate price level than the time-dependent model. With real rigidities present, however, our model can exhibit nominal stickiness similar to a conventional time-dependent model.