Nominal Exchange Rate Anchoring Under Inflation Inertia /

This paper develops a theory of inflation inertia based on forward looking staggered price setting in the nontradable goods sector of a small open economy. Unlike current theories of sticky prices, transitions to a lower steady state inflation rate take time even if they are fully credible, and they...

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Detalles Bibliográficos
Autor Principal: Calvo, Guillermo
Outros autores: Celasun, Oya, Kumhof, Michael
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2002.
Series:IMF Working Papers; Working Paper ; No. 2002/030
Acceso en liña:Full text available on IMF
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100 1 |a Calvo, Guillermo. 
245 1 0 |a Nominal Exchange Rate Anchoring Under Inflation Inertia /  |c Guillermo Calvo, Michael Kumhof, Oya Celasun. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2002. 
300 |a 1 online resource (36 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper develops a theory of inflation inertia based on forward looking staggered price setting in the nontradable goods sector of a small open economy. Unlike current theories of sticky prices, transitions to a lower steady state inflation rate take time even if they are fully credible, and they are associated with significant output losses in nontradables There is a welfare trade-off between these output losses and the gains from smaller inflationary distortions. Gains exceed losses for most calibrations. The optimal steady state is the Friedman rule. 
538 |a Mode of access: Internet 
700 1 |a Celasun, Oya. 
700 1 |a Kumhof, Michael. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2002/030 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2002/030/001.2002.issue-030-en.xml  |z IMF e-Library