Information frictions and monetary policy

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F12%3A00457911" target="_blank" >RIV/67985998:_____/12:00457911 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Information frictions and monetary policy

Original language description

Real effects of monetary policy depend crucially on the nature of nominal rigidities. Thesenrigidities are typically modelled as sticky prices with explicit assumptions on either frequencynof price adjustments (Calvo-style models) or on the cost of adjustment (menu costnmodels). However, recent empirical work cast doubts on these workhorses of standardnNew Keynesian models. This paper discusses another approach to nominal frictions, whichnis based on the assumption that agents face difficulties processing information. If, forninstance, price-setters learn about an interest rate cut with a delay, then their price alsonresponds sluggishly. This rigidity implies positive temporary effects on output and unemployment.nWe conclude that models based on information frictions can account for severalnempirical facts other model have difficulties reconciling with, such as sluggish responsesnof both real and nominal variables, frequent but staggered price changes or a steepernPhillips c

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AH - Economics

OECD FORD branch

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Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2012

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

ACTA VŠFS

ISSN

1802-792X

e-ISSN

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Volume of the periodical

6

Issue of the periodical within the volume

1

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

18

Pages from-to

7-24

UT code for WoS article

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EID of the result in the Scopus database

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