Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
966011 | Journal of Macroeconomics | 2010 | 7 Pages |
Abstract
The Calvo scheme represents the standard specification of price resetting in the New Keynesian model. We show that using this rather than a fixed duration (Taylor) scheme matters importantly for the dynamics of the model as it allows it to generate hump-shaped response of output without an “excessive” average duration of price spells.
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Social Sciences and Humanities
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Economics and Econometrics
Authors
Fabrice Collard, Harris Dellas,