Price stickiness, inflation, and output dynamics : a cross-country analysis / by Hashmat Khan. : FB3-2/100-12E-PDF
This paper investigates a key implication of the sticky-price model of business cycle that is designed to explain the observed persistence in output fluctuations around its long-run growth path. A prediction of this model is that a higher trend inflation rate will increase the frequency of price adjustment and thereby inversely affect the persistence in deviations of output from its trend. Therefore, countries with a high trend inflation rate should have less-persistent output fluctuations. The characteristics of the data set available to examine this hypothesis raise several implementation issues. This paper focuses on those issues in a manner that is consistent with the theoretical framework of the model.--Concluding remarks
Lien permanent pour cette publication :
publications.gc.ca/pub?id=9.578632&sl=1
Ministère/Organisme | Bank of Canada. |
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Titre | Price stickiness, inflation, and output dynamics : a cross-country analysis / by Hashmat Khan. |
Titre de la série | Bank of Canada working paper1701-93972000-12 |
Type de publication | Série - Voir l'enregistrement principal |
Langue | [Anglais] |
Format | Électronique |
Document électronique | |
Autres formats offerts | Papier-[Anglais] |
Note(s) | "This paper investigates a key implication of the sticky-price model of business cycle that is designed to explain the observed persistence in output fluctuations around its long-run growth path. A prediction of this model is that a higher trend inflation rate will increase the frequency of price adjustment and thereby inversely affect the persistence in deviations of output from its trend. Therefore, countries with a high trend inflation rate should have less-persistent output fluctuations. The characteristics of the data set available to examine this hypothesis raise several implementation issues. This paper focuses on those issues in a manner that is consistent with the theoretical framework of the model."--Concluding remarks. The ISBN (0-662-29132-8) for the print edition has been incorrectly copied in this electronic publication. Résumé en français |
Information sur la publication | Ottawa - Ontario : Bank of Canada July 2000. |
Description | 56p.figs., graphs, references, tables |
ISSN | 1701-9397 |
Numéro de catalogue |
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Descripteurs | Inflation Prices Exchange rates |