Disinflation with imperfect credibility
Article Abstract:
A new theory of real disinflation effects is proposed. The theory explains the effects through the interaction of staggering, as found in New Keynesian models, and imperfect credibility, as found in New Classical models. The combination provides more realistic results compared to those provided by New Keynesian and New Classical assumptions alone. For example, announced disinflation is found to reduce expected output in cases of low credibility.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Why does high inflation raise inflation uncertainty?
Article Abstract:
An analysis of inflation is presented. A model describing the behavior of inflation and its impact on future uncertainty is analyzed. It is shown that low actual and expected inflation levels will move monetary policy makers to keep them at those levels. However, high inflation leave policymakers with the dilemma of choosing between disinflation and the possibility of recession.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Another look at long-run money demand
Article Abstract:
Research investigating the long-term demand for money in the United States in the period after World War II is presented. Particular attention is given to estimates of money demand, such as 0.5 elasticity of income and 0.05 semi-elasticity of interest.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Does antitrust need to be modernized? Why barriers to entry are barriers to understanding. The case for antitrust enforcement
- Abstracts: Growth and the effects of inflation. The sources of growth. Endogenous growth theory: an introduction
- Abstracts: Evolution with changing mutation rates. On the indices of zeros of Nash fields. The knowledge problem, entrepreneurial discovery, and Austrian market process theory
- Abstracts: Strong concavity properties of indirect utility functions in multisector optimal growth models
- Abstracts: Optimality of irreversible pollution accumulation. Optimal forest rotation and land values under a borrowing constraint