scholarly journals Aggregation and Optimization with State-Dependent Pricing: A Comment

2005 ◽  
Author(s):  
Vladislav Damjanovic ◽  
Charles Nolan
Keyword(s):  
State Dependent ◽  
State Dependent Pricing

STATE DEPENDENT PRICING AND BUSINESS CYCLE ASYMMETRIES

2007 ◽  
Vol 48 (1) ◽  
pp. 281-310 ◽  
Author(s):  
Michael B. Devereux ◽  
Henry E. Siu
Keyword(s):  
Business Cycle ◽  
State Dependent ◽  
State Dependent Pricing

scholarly journals Aggregation and Optimization with State-Dependent Pricing: A Comment

Econometrica ◽  
2006 ◽  
Vol 74 (2) ◽  
pp. 565-573 ◽  
Author(s):  
Vladislav Damjanovic ◽  
Charles Nolan
Keyword(s):  
State Dependent ◽  
State Dependent Pricing

scholarly journals Non-linearities, state-dependent prices and the transmission mechanism of monetary policy

2021 ◽  
Author(s):  
Guido Ascari ◽  
Timo Haber
Keyword(s):  
Monetary Policy ◽  
Price Level ◽  
Transmission Mechanism ◽  
Monetary Policy Shocks ◽  
Real Effects ◽  
State Dependent ◽  
Trend Inflation ◽  
Policy Shocks ◽  
Linear Effects ◽  
State Dependent Pricing

Abstract A sticky price theory of the transmission mechanism of monetary policy shocks based on state-dependent pricing yields two testable implications, that do not hold in time-dependent models. First, large monetary policy shocks should yield proportionally larger initial responses of the price level. Second, in a high trend inflation regime, the response of the price level to monetary policy shocks should be larger and real effects smaller. Our analysis provides evidence supporting these non-linear effects in the response of the price level in aggregate US data, indicating state-dependent pricing as an important feature of the transmission mechanism of monetary policy.

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