| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 965468 | Journal of Macroeconomics | 2012 | 18 Pages |
Abstract
⺠We examine a New Keynesian economy with rule-of-thumb price setters. ⺠We study the optimal steady-state rate of inflation under commitment. ⺠Monetary authority commits to a positive steady-state rate of inflation. ⺠Steady-state rate of inflation depends on the model's structural parameters. ⺠Optimal steady-state inflation hinges on a property of the aggregate supply.
Related Topics
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Economics and Econometrics
Authors
D. Pontiggia,