Nominal Exchange Rate Anchoring Under Inflation Inertia /

This paper develops a theory of inflation inertia based on forward looking staggered price setting in the nontradable goods sector of a small open economy. Unlike current theories of sticky prices, transitions to a lower steady state inflation rate take time even if they are fully credible, and they...

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Bibliografiske detaljer
Hovedforfatter: Calvo, Guillermo
Andre forfattere: Celasun, Oya, Kumhof, Michael
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2002.
Serier:IMF Working Papers; Working Paper ; No. 2002/030
Online adgang:Full text available on IMF