Entry of firms and cost of disinflation in New Keynesian models

Laurence Bloch

Economics Letters, 2013, vol. 119, issue 3, 268-271

Abstract: Introducing costs of entry in the product market into a New Keynesian model with Calvo-type price setting and non zero steady state inflation is a means to restore output costs of disinflation in the short run, before output gains in the long run.

Keywords: Disinflation; Sticky prices; Non zero steady state inflation; Firm entry; Non-linear simulations (search for similar items in EconPapers)
JEL-codes: E31 E32 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:119:y:2013:i:3:p:268-271

DOI: 10.1016/j.econlet.2013.02.012

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