EconPapers    
Economics at your fingertips  
 

Endogenous Money or Sticky Price? Comment on Monetary Non-neutrality and Inflation Dynamics

Pengfei Wang () and Yi Wen ()

Working Papers from Cornell University, Center for Analytic Economics

Abstract: In this paper we show that the highly persistent inflation dynamics and its lead-lag relationship with output can be explained by a standard flexible price RBC model augmented with endogenous monetary policy. Endogenous monetary policy acting upon the illusion that price is sticky and money is effective can create price movements that appear to indicate price stickiness, although there is none in the economy.

JEL-codes: E31 E32 E52 (search for similar items in EconPapers)
Date: 2004-05
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://cae.economics.cornell.edu/04-08.pdf

Related works:
Journal Article: Endogenous money or sticky prices?--comment on monetary non-neutrality and inflation dynamics (2005) Downloads
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:ecl:corcae:04-08

Access Statistics for this paper

More papers in Working Papers from Cornell University, Center for Analytic Economics Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2021-08-01
Handle: RePEc:ecl:corcae:04-08