Hidden Bibliographic Details
| Other authors / contributors: | Celasun, Oya.
Kumhof, Michael.
International Monetary Fund. Research Department.
International Monetary Fund. Middle Eastern Department.
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| ISBN: | 1451892454
9781451892451
1462300626
9781462300624
1452799733
9781452799735
1281606421
9781281606426
9786613787132
6613787132
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| Notes: | Includes bibliographical references (pages 33-36).
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | This paper develops a theory of inflation inertia based on forward looking staggered price setting in the nontradable goods sector of a small open economy. Unlike current theories of sticky prices, transitions to a lower steady state inflation rate take time even if they are fully credible, and they are associated with significant output losses in nontradables There is a welfare trade-off between these output losses and the gains from smaller inflationary distortions. Gains exceed losses for most calibrations. The optimal steady state is the Friedman rule.
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| Other form: | Print version: Calvo, Guillermo A. Nominal exchange rate anchoring under inflation inertia. [Washington, D.C.] : International Monetary Fund, ©2002
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| Standard no.: | 10.5089/9781451892451.001
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