Price-Setting, Monetary Policy and the Contractionary Effects of Productivity Improvements

2011 ◽  
Author(s):  
Massimiliano Tancioni ◽  
Francesco Giuli
Keyword(s):  
Monetary Policy ◽  
Price Setting

Monetary policy responses and strategic price setting

2007 ◽  
Vol 95 (3) ◽  
pp. 327-333 ◽  
Author(s):  
George J. Bratsiotis
Keyword(s):  
Monetary Policy ◽  
Price Setting ◽  
Policy Responses

Optimal Monetary Policy with Relative Price Distortions

2005 ◽  
Vol 95 (1) ◽  
pp. 89-109 ◽  
Author(s):  
Tack Yun
Keyword(s):  
Monetary Policy ◽  
Price Dispersion ◽  
Relative Price ◽  
Price Setting ◽  
Optimal Monetary Policy ◽  
Equilibrium Conditions ◽  
Price Distortion ◽  
Inflation Targets ◽  
Price Distortions ◽  
Initial Price

This paper analyzes optimal monetary policy in a sticky price model with Calvo-type staggered price-setting. In the paper, the optimal monetary policy maximizes the expected utility of a representative household without having to rely on a set of linearly approximated equilibrium conditions, given the distortions associated with the staggered price-setting. It shows that the complete stabilization of the price level is optimal in the absence of initial price dispersion, while optimal inflation targets respond to changes in the level of relative price distortion in the presence of initial price dispersion.

Disaggregated inflation rate in the monetary policy of the central bank

2017 ◽  
Vol 62 (1) ◽  
pp. 26-40
Author(s):  
Aleksandra Hałka
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Price Index ◽  
Inflation Rate ◽  
External Factors ◽  
Price Setting ◽  
Factors Affecting ◽  
Core Inflation ◽  
The Core ◽  
Setting Process

This article aims at presenting the results of the research concerning disaggregated price index in the assessment of inflation processes in Poland. Presented analysis shows that isaggregated approach allows for a fuller understanding of the nature of the price-setting process and etter identification of factors affecting inflation. The results indicate three conclusions. Firstly, a significant part of the inflation in Poland is dependent on domestic factors. Secondly, the core inflation rate should not be equated with the measure of demand pressures in the economy. Thirdly, a set of external factors affecting the price-setting process in Poland is relatively wide and distinct for different components of the price index.

INFLATION REGIMES AND PRICE-SETTING INTERACTIONS

2005 ◽  
Vol 08 (03) ◽  
pp. 339-355
Author(s):  
EDOARDO GAFFEO
Keyword(s):  
Monetary Policy ◽  
Information Acquisition ◽  
Large Body ◽  
Empirical Work ◽  
Reaction Function ◽  
Price Setting ◽  
Clear Cut ◽  
Multiple Regimes ◽  
Monetary Policy Reaction Function ◽  
Post War

A large body of empirical work is clear-cut in suggesting that the international post-war inflation experience may be described in terms of switches among multiple regimes. A definite explanation of this stylized fact, however, is still under debate. In this paper, we model an economy composed of a large number of interacting price-setting firms which can replicate the evidence at hand. Interactions emerge as a by-product of consumers' uncertainty on the prices charged by different firms. The underlying Markovian structure possesses a stationary distribution with multiple modes, so that its associated dynamics is characterized by multiple regimes and sudden transitions among them. In particular, for any (almost-fully accommodating) monetary policy reaction function, the existence of a multiplicity of inflation regimes is associated to the information acquisition technology consumers have in searching for the lowest price.

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