| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP8565 |
| DP8565 Optimal Monetary Policy with Endogenous Entry and Product Variety | |
| Fabio Ghironi; Florin Bilbiie; Ippei Fujiwara | |
| 发表日期 | 2011-09-01 |
| 出版年 | 2011 |
| 语种 | 英语 |
| 摘要 | We show that deviations from long-run stability of product prices are optimal in the presence of endogenous producer entry and product variety in a sticky-price model with monopolistic competition in which price stability would be optimal in the absence of entry. Specifically, a long-run positive (negative) rate of inflation is optimal when the benefit of variety to consumers falls short of (exceeds) the market incentives for creating that variety under flexible prices, governed by the desired markup. Plausible preference specifications and parameter values justify a long-run inflation rate of two percent or higher. Price indexation implies even larger deviations from long-run price stability. However, price stability (around this non-zero trend) is close to optimal in the short run, even in the presence of time-varying flexible-price markups that distort the allocation of resources across time and states. The central bank uses its leverage over real activity in the long run, but not in the short run. Our results point to the need for continued empirical research on the determinants of markups and investigation of the benefit of product variety to consumers. |
| 主题 | International Macroeconomics |
| 关键词 | Entry Optimal inflation rate Price stability Product variety Ramsey-optimal monetary policy. |
| URL | https://cepr.org/publications/dp8565 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/537402 |
| 推荐引用方式 GB/T 7714 | Fabio Ghironi,Florin Bilbiie,Ippei Fujiwara. DP8565 Optimal Monetary Policy with Endogenous Entry and Product Variety. 2011. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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