Optimal monetary policy, endogenous sticky prices, and multiple equilibria

被引:0
作者
Barseghyan, Levon [1 ]
DiCecio, Riccardo [2 ]
机构
[1] Cornell Univ, Ithaca, NY 14853 USA
[2] Fed Reserve Bank St Louis, St Louis, MO USA
关键词
optimal monetary policy; multiple equilibria; sticky prices; DISCRETION; DYNAMICS; OUTPUT; MONEY;
D O I
暂无
中图分类号
F [经济];
学科分类号
02 ;
摘要
We analyze optimal discretionary monetary policy in an endogenous sticky prices model. Similar models with exogenous sticky prices can deliver multiple equilibria. This is a necessary condition for the occurrence of expectation traps (when private agents' expectations determine the equilibrium level of inflation). In our model, sticky-price firms are allowed to switch to flexible pricing by paying a random cost. For plausible parametrizations, our model has a unique low-inflation equilibrium. With endogenous sticky prices, the monetary authority does not validate high-inflation expectations and deviates to the Friedman rule.
引用
收藏
页数:19
相关论文
共 50 条
[41]   Monetary Policy Shocks and Local Housing Prices [J].
Xie, Shihan .
INTERNATIONAL JOURNAL OF CENTRAL BANKING, 2025, 21 (03) :327-373
[42]   Cost of Sticky Prices under Multiple Stages of Production [J].
Shirota, Toyoichiro .
JOURNAL OF MONEY CREDIT AND BANKING, 2021, 53 (05) :1211-1222
[43]   Information, Liquidity, Asset Prices, and Monetary Policy [J].
Lester, Benjamin ;
Postlewaite, Andrew ;
Wright, Randall .
REVIEW OF ECONOMIC STUDIES, 2012, 79 (03) :1209-1238
[44]   Pairwise trade, asset prices, and monetary policy [J].
Nosal, Ed ;
Rocheteau, Guillaume .
JOURNAL OF ECONOMIC DYNAMICS & CONTROL, 2013, 37 (01) :1-17
[45]   Optimal irreversible monetary policy [J].
Hasui, Kohei ;
Kobayashi, Teruyoshi ;
Sugo, Tomohiro .
EUROPEAN ECONOMIC REVIEW, 2021, 134
[46]   Optimal Monetary Policy in China [J].
He, Ping ;
Nie, Guangyu ;
Wang, Guanglong ;
Zhang, Xiang .
CHINA & WORLD ECONOMY, 2011, 19 (01) :83-105
[47]   Optimal sustainable monetary policy [J].
Kurozumi, Takushi .
JOURNAL OF MONETARY ECONOMICS, 2008, 55 (07) :1277-1289
[48]   Unconditionally optimal monetary policy [J].
Damjanovic, Tatiana ;
Damjanovic, Vladislav ;
Nolan, Charles .
JOURNAL OF MONETARY ECONOMICS, 2008, 55 (03) :491-500
[49]   Labor Selection, Turnover Costs, and Optimal Monetary Policy [J].
Faia, Ester ;
Lechthaler, Wolfgang ;
Merkl, Christian .
JOURNAL OF MONEY CREDIT AND BANKING, 2014, 46 (01) :115-144
[50]   An empirical assessment of Optimal Monetary Policy in the Euro area [J].
Chen, Xiaoshan ;
Kirsanova, Tatiana ;
Leith, Campbell .
EUROPEAN ECONOMIC REVIEW, 2017, 100 :95-115