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Monetary Neutrality with Sticky Prices and Free Entry

Author

Listed:
  • Florin O. Bilbiie

    (University of Lausanne and CEPR)

Abstract

Monetary policy is neutral even with fixed prices if free entry determines product variety optimally, as in Dixit and Stiglitz (

Suggested Citation

  • Florin O. Bilbiie, 2021. "Monetary Neutrality with Sticky Prices and Free Entry," The Review of Economics and Statistics, MIT Press, vol. 103(3), pages 492-504, July.
    • Handle: RePEc:tpr:restat:v:103:y:2021:i:3:p:492-504
    DOI: 10.1162/rest_a_00898
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    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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    Cited by:

    1. Florin O. Bilbiie & Marc J. Melitz, 2020. "Aggregate-Demand Amplification of Supply Disruptions: The Entry-Exit Multiplier," NBER Working Papers 28258, National Bureau of Economic Research, Inc.
    2. Casarin, Roberto & Costantini, Mauro & Paradiso, Antonio, 2021. "On the role of dependence in sticky price and sticky information Phillips curve: Modelling and forecasting," Economic Modelling, Elsevier, vol. 105(C).
    3. repec:cam:camjip:2318 is not listed on IDEAS
    4. Kurozumi, Takushi & Van Zandweghe, Willem, 2025. "Supply shocks, employment gap, and monetary policy," European Economic Review, Elsevier, vol. 177(C).
    5. Andrea Colciago & Vivien Lewis & Branka Matyska, 2023. "Corporate taxes, productivity, and business dynamism," Working Papers 512, University of Milano-Bicocca, Department of Economics, revised May 2023.
    6. Khalil, Makram & Lewis, Vivien, 2024. "Product turnover and endogenous price flexibility in uncertain times," CEPR Discussion Papers 18941, C.E.P.R. Discussion Papers.
    7. Hamano, Masashige & Zanetti, Francesco, 2022. "Monetary policy, firm heterogeneity, and product variety," European Economic Review, Elsevier, vol. 144(C).
    8. Kaszab, Lorant & Marsal, Ales & Rabitsch, Katrin, 2022. "Asset pricing with free entry and exit of firms," Economics Letters, Elsevier, vol. 217(C).
    9. repec:cam:camjip:2317 is not listed on IDEAS
    10. Larsen, Rasmus Bisgaard & Ravn, Søren Hove & Santoro, Emiliano, 2025. "House prices, endogenous productivity, and the effects of government spending shocks," European Economic Review, Elsevier, vol. 172(C).
    11. Boitier, Vincent, 2024. "Private ownership in monopolistic competition models," Research in Economics, Elsevier, vol. 78(4).
    12. Bilbiie, Florin & Trabandt, Mathias, 2023. "Sticky Prices or Sticky Wages? An Equivalence Result," CEPR Discussion Papers 18542, C.E.P.R. Discussion Papers.

    More about this item

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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