THE SWINGS OF U.S. INFLATION AND THE GIBSON PARADOX.
In recent business cycles, U.S. inflation has experienced a reduction of volatility and a severe weakening in the correlation to the nominal interest rate (Gibson paradox). We examine these facts in an estimated dynamic stochastic general equilibrium model with money. Our findings point at a flatter...
| Publicado en: | Economic Inquiry Vol. 56; no. 2; pp. 799 - 821 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Apr2018
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=128133090&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 128133090 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Apr2018 vid: 56 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 128133090 10.1111/ecin.12523 ppf: 799 ppct: 22 formats: fmt: – @attributes: type: T – @attributes: type: P size: 866KB tig: atl: THE SWINGS OF U.S. INFLATION AND THE GIBSON PARADOX. aug: au: Casares, Miguel Vázquez, Jesús affil: Associate Professor, Departamento de Economía, Universidad Pública de Navarra, Pamplona, Spain Full Professor, Departamento FAE II, Universidad del País Vasco, Bilbao, Spain su: United States Price inflation Risk aversion Business cycles Economic equilibrium Gibson paradox sug: subj: Price inflation Risk aversion Business cycles Economic equilibrium United States Gibson paradox ab: In recent business cycles, U.S. inflation has experienced a reduction of volatility and a severe weakening in the correlation to the nominal interest rate (Gibson paradox). We examine these facts in an estimated dynamic stochastic general equilibrium model with money. Our findings point at a flatter New Keynesian Phillips Curve (higher price stickiness) and a lower persistence of markup shocks as the main explanatory factors. In addition, a higher interest‐rate elasticity of money demand, an increasing role of demand‐side shocks, and a less systematic behavior of Fed's monetary policy also account for the recent patterns of U.S. inflation dynamics. (<italic>JEL</italic> E32, E47) pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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