An Evolutionary Theory of Inflation Inertia

Alexis Anagnostopoulos, Italo Bove, Karl Schlag and Omar Licandro ()

No 2006-25, Working Papers from FEDEA

Abstract: We provide a simple theory of in.ation inertia in a staggered price setting framework a la Calvo (1983). Contrary to Calvo.s formulation, the frequency of price changes is allowed to vary according to an evolutionary criterion. Inertia is the direct result of gradual adjustment in this frequency following a permanent change in the rate of money growth.

Date: 2006-11
New Economics Papers: this item is included in nep-cba, nep-evo, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://documentos.fedea.net/pubs/dt/2006/dt-2006-25.pdf (application/pdf)

Related works:
Journal Article: An Evolutionary Theory of Inflation Inertia (2007)
Working Paper: An Evolutionary Theory of Inflation Inertia (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fda:fdaddt:2006-25

Access Statistics for this paper

More papers in Working Papers from FEDEA
Bibliographic data for series maintained by Carmen Arias ().