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Stopping Inflations, Big and Small Author info | Abstract | Publisher info | Download info | Related research | Statistics Ireland, Peter N
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Previous studies of disinflation work with models in which firms use time dependent strategies, changing nominal prices at intervals of fixed length. These models may be criticized for failing to allow pricing behavior to adjust after a large shift in policy regime. Consequently, this paper develops a model that permits firms to adopt strategies that are partially state-dependent, changing nominal prices whenever they depart sufficiently from their target values. The paper uses this model to examine how the welfare costs and benefits of disinflation vary with the initial inflation rate and the speed of disinflation. Copyright 1997 by Ohio State University Press.
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Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking .
Volume (Year): 29 (1997)
Issue (Month): 4 (November)
Pages: 759-75
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Handle: RePEc:mcb:jmoncb:v:29:y:1997:i:4:p:759-75Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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