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Monetary Persistence, Imperfect Competition and Staggering Complementarities Author info | Abstract | Publisher info | Download info | Related research | Statistics Merkl, Christian
Snower, Dennis J.
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This paper explores the influence of wage and price staggering on monetary persistence. We show that, for plausible parameter values, wage and price staggering are highly complementary in generating monetary persistence. We do so by proposing the new measure "quantitative persistence," after discussing weaknesses of the "contract multiplier," which is generally used to compare persistence. The existence of complementarities means that beyond understanding how wage and price staggering work in isolation, it is important to explore their interactions. Furthermore, our analysis indicates that the degree of monetary persistence generated by wage vis-à-vis price staggering depends on the relative competitiveness of the labour and product markets. We show that the conventional wisdom that wage staggering can generate more persistence than price staggering does not necessarily hold.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
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Keywords: monetary persistence ; monetary policy ; price staggering ; wage staggering ; Other versions of this item:
Article Merkl, Christian & Snower, Dennis, 2009.
"Monetary Persistence, Imperfect Competition, And Staggering Complementarities ,"
Macroeconomic Dynamics ,
Cambridge University Press, vol. 13(01), pages 81-106, February.
[Downloadable!] Paper Find related papers by JEL classification: E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
This paper has been announced in the following NEP Reports :
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Merkl, Christian & Snower, Dennis, 2009.
"Monetary Persistence, Imperfect Competition, And Staggering Complementarities ,"
Macroeconomic Dynamics ,
Cambridge University Press, vol. 13(01), pages 81-106, February.
[Downloadable!]
Other versions:
Merkl, Christian & Snower, Dennis J., 2006.
"Monetary Persistence, Imperfect Competition and Staggering Complementarities ,"
CEPR Discussion Papers
5658, C.E.P.R. Discussion Papers.
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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.)
Marika Karanassou & Hector Sala & Dennis J. Snower, 2007.
"The Evolution of Inflation and Unemployment: Explaining the Roaring Nineties ,"
IZA Discussion Papers
2900, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
Marika Karanassou & Hector Sala & Dennis J. Snower, 2007.
"The Evolution of Inflation and Unemployment: Explaining the Roaring Nineties ,"
Working Papers
604, Queen Mary, University of London, Department of Economics.
[Downloadable!] Marika Karanassou & Hector Sala & Dennis J. Snower, 2007.
"The Evolution of Inflation and Unemployment: Explaining the Roaring Nineties ,"
Kiel Working Papers
1350, Kiel Institute for the World Economy.
[Downloadable!] Marika Karanassou & Hector Sala & Dennis J. Snower, 2008.
"The Evolution Of Inflation And Unemployment: Explaining The Roaring Nineties ,"
Australian Economic Papers ,
Blackwell Publishing, vol. 47(4), pages 334-354, December.
[Downloadable!] (restricted) Christian Merkl & Dennis J. Snower, 2007.
"Monetary Persistence, Imperfect Competition, and Staggering Complementarities ,"
IZA Discussion Papers
3033, Institute for the Study of Labor (IZA).
[Downloadable!]
Other versions:
Merkl, Christian & Snower, Dennis J., 2006.
"Monetary Persistence, Imperfect Competition and Staggering Complementarities ,"
CEPR Discussion Papers
5658, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Merkl, Christian & Snower, Dennis, 2009.
"Monetary Persistence, Imperfect Competition, And Staggering Complementarities ,"
Macroeconomic Dynamics ,
Cambridge University Press, vol. 13(01), pages 81-106, February.
[Downloadable!] Marika Karanassou & Hector Sala & Dennis Snower, 2008.
"Phillips Curves and Unemployment Dynamics: A Critique and a Holistic Perspective ,"
Kiel Working Papers
1441, Kiel Institute for the World Economy.
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Marika Karanassou & Hector Sala & Dennis J. Snower, 2006.
"Phillips Curves and Unemployment Dynamics: A Critique and a Holistic Perspective ,"
Working Papers
573, Queen Mary, University of London, Department of Economics.
[Downloadable!] Marika Karanassou & Hector Sala & Dennis J. Snower, 2008.
"Phillips Curves and Unemployment Dynamics: A Critique and a Holistic Perspective ,"
Discussion Papers
2008-08, School of Economics, The University of New South Wales.
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"Phillips Curves and Unemployment Dynamics: A Critique and a Holistic Perspective ,"
IZA Discussion Papers
2265, Institute for the Study of Labor (IZA).
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"On the Non-Optimality of Information: An Analysis of the Welfare Effects of Anticipated Shocks in the New Keynesian Model ,"
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Other versions: Wolfgang Lechthaler & Christian Merkl & Dennis Snower, 2008.
"Monetary Persistence and the Labor Market: A New Perspective ,"
Kiel Working Papers
1409, Kiel Institute for the World Economy.
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