IDEAS home Printed from https://ideas.repec.org/a/bla/metroe/v77y2026i1p82-93.html

Monetary Dynamic Stochastic General Equilibrium Models and Inflation Persistence

Author

Listed:
  • Salaheddine El Omari
  • Jalal Qanas

Abstract

The paper investigates the capacity of New Keynesian (NK) models to explain inflation persistence without relying on ad hoc backwards‐looking mechanisms or external source of inertia. It explores various features of NK models– such as sticky wages, roundabout production structure, positive trend inflation, and monetary policy inertia– that could generate persistent inflation. The paper's main finding is that the interaction between sticky prices, sticky wages, intermediate input, real frictions and the Taylor rule, especially the inertial component of the rule, is particularly effective in generating highly serially correlated movements in inflation as observed in data.

Suggested Citation

  • Salaheddine El Omari & Jalal Qanas, 2026. "Monetary Dynamic Stochastic General Equilibrium Models and Inflation Persistence," Metroeconomica, Wiley Blackwell, vol. 77(1), pages 82-93, February.
    • Handle: RePEc:bla:metroe:v:77:y:2026:i:1:p:82-93
    DOI: 10.1111/meca.12512
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/meca.12512
    Download Restriction: no
    File URL: https://libkey.io/10.1111/meca.12512?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:metroe:v:77:y:2026:i:1:p:82-93. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0026-1386 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.