Inflation Dynamics during the Financial Crisis

• 成果类型: Article
• 署名作者: Gilchrist, Simon; Schoenle, Raphael; Sim, Jae; Zakrajsek, Egon
• 署名单位: Boston University; National Bureau of Economic Research; Brandeis University; Brandeis University; Federal Reserve System - USA; Federal Reserve System Board of Governors; Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20150248
• 发表日期: 2017
• 页码: 785-823
• 关键词: market imperfections; prices; INVESTMENT; BEHAVIOR

摘要

Using a novel dataset, which merges good-level prices underlying the PPI with the respondents' balance sheets, we show that liquidity constrained firms increased prices in 2008, while their unconstrained counterparts cut prices. We develop a model in which firms face financial frictions while setting prices in customer markets. Financial distortions create an incentive for firms to raise prices in response to adverse financial or demand shocks. This reaction reflects the firms' decisions to preserve internal liquidity and avoid accessing external finance, factors that strengthen the countercyclical behavior of markups and attenuate the response of inflation to fluctuations in output.