Staggered Price Setting with Endogenous Frequency of Adjustment
The classic models of staggered adjustment of Taylor and Blanchard takes the frequency of price or wage adjustment as exogenous. This paper develops a model in which the frequency of price changes in endogenous. It then uses the model to analyze the effects of changes in the parameters of the economy on the frequency of adjustment and the real effects of monetary shocks.
|Date of creation:||Oct 1989|
|Date of revision:|
|Publication status:||published as Economics Letters, Vol. 32, pp. 205-210, March 1990.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
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CEPREMAP Working Papers (Couverture Orange)
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