On staggered prices and optimal inflation
This paper computes the steady-state optimal rate of inflation in a model with monopolistic competition under two different sticky-price specifications, Calvo (1983) and Taylor (1980).The optimal rate of inflation is positive and almost identical to the ratio between the rate of discount and the Dix...
| Authors: | ; |
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| Format: | Article |
| Status: | Accepted version |
| Publication date: | 2019 |
| Country: | España |
| Institution: | Universidad Pública de Navarra |
| Repository: | Academica-e. Repositorio Institucional de la Universidad Pública de Navarra |
| OAI Identifier: | oai:academica-e.unavarra.es:2454/36736 |
| Online Access: | https://hdl.handle.net/2454/36736 |
| Access Level: | Open access |
| Keyword: | Monopolistic competition Sticky prices Optimal inflation |
| Summary: | This paper computes the steady-state optimal rate of inflation in a model with monopolistic competition under two different sticky-price specifications, Calvo (1983) and Taylor (1980).The optimal rate of inflation is positive and almost identical to the ratio between the rate of discount and the Dixit-Stiglitzelasticity. |
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