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Bank of Canada RSS Feedsen2024-03-29T12:38:41+00:00Predetermined Prices and the Persistent Effects of Money on Output
https://www.bankofcanada.ca/2001/08/working-paper-2001-13/
This paper illustrates a model of predetermined pricing, where firms set a fixed schedule of nominal prices at the time of price readjustment, based on the work of Fischer (1977). This type of price-setting specification cannot produce any excess persistence in a fixed-duration model of staggered prices, but we show that with a probabilistic model of price adjustment, as in Calvo (1983), a predetermined pricing specification can produce excess persistence.2001-08-01T15:24:55+00:00enPredetermined Prices and the Persistent Effects of Money on Output2001-08-01Monetary policy transmissionWorking Paper 2001-13 https://www.bankofcanada.ca/wp-content/uploads/2010/02/wp01-13.pdfPredetermined Prices and the Persistent Effects of Money on OutputMichael DevereuxJames YetmanAugust 2001EE3E30