Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099053 | Journal of Economic Dynamics and Control | 2012 | 14 Pages |
Abstract
When used to examine disinflation monetary policies, the current workhorse dynamic stochastic general equilibrium model of business cycle fluctuations is able to quantitatively account for the main stylized facts in terms of recessionary effects and sacrifice ratio. We complement the transitional analysis of the short-run costs with a rigorous welfare evaluation and show that, despite the long-lasting economic downturn, disinflation entails non-zero overall welfare gains.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Guido Ascari, Tiziano Ropele,