The Calvo price-setting mechanism produces relative-price dispersion among firms, while the Rotemberg model is consistent with a symmetric equilibrium. Nonetheless, both models imply the same welfare costs of inflation and the same prescriptions for welfare-maximizing Central Banks. (c) 2006 Elsevier B.V. All rights reserved.
The welfare loss from unstable inflation / Nistico', Salvatore. - In: ECONOMICS LETTERS. - ISSN 0165-1765. - STAMPA. - 96:1(2007), pp. 51-57. [10.1016/j.econlet.2006.12.009]
The welfare loss from unstable inflation
NISTICO', SALVATORE
2007
Abstract
The Calvo price-setting mechanism produces relative-price dispersion among firms, while the Rotemberg model is consistent with a symmetric equilibrium. Nonetheless, both models imply the same welfare costs of inflation and the same prescriptions for welfare-maximizing Central Banks. (c) 2006 Elsevier B.V. All rights reserved.File allegati a questo prodotto
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