Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve

N. Gregory Mankiw and Ricardo Reis

The Quarterly Journal of Economics, 2002, vol. 117, issue 4, 1295-1328

Abstract: This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly throughout the population. Compared with the commonly used sticky-price model, this sticky-information model displays three related properties that are more consistent with accepted views about the effects of monetary policy. First, disinflations are always contractionary (although annoimced disinflations are less contractionary than surprise ones). Second, monetary policy shocks have their maximum impact on inflation with a substantial delay. Third, the change in inflation is positively correlated with the level of economic activity.

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (1979)

Downloads: (external link)
http://hdl.handle.net/10.1162/003355302320935034 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve (2002)
Journal Article: Sticky information versus sticky prices: a proposal to replace the New-Keynesian Phillips curve (2001)
Working Paper: Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve (2001)
Working Paper: Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve (2001)
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:oup:qjecon:v:117:y:2002:i:4:p:1295-1328.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva

More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().