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dc.contributor.authorKara, Engin
dc.date.accessioned2016-06-29T13:04:36Z
dc.date.available2016-06-29T13:04:36Z
dc.date.issued2015-11
dc.identifier.issn1873-1295
dc.identifier.urihttp://hdl.handle.net/10679/4141
dc.identifier.urihttp://www.sciencedirect.com/science/article/pii/S0304393215000926
dc.description.abstractNew Keynesian models have been criticised on the grounds that they require implausibly large price shocks to explain inflation. Bils et al. (2012) show that, while these shocks are needed to reduce the excessive inflation persistence generated by the models, they give rise to unrealistically volatile reset price inflation. This paper shows that introducing heterogeneity in price stickiness in the models overcomes these criticisms directed at them. The incorporation of heterogeneity in price stickiness reduces the need for large price shocks. With smaller price shocks, the new model comes close to matching the data on reset inflation.
dc.language.isoengen_US
dc.publisherElsevier
dc.relation.ispartofJournal of Monetary Economics
dc.rightsopenAccess
dc.titleThe reset inflation puzzle and the heterogeneity in price stickinessen_US
dc.typeArticleen_US
dc.description.versionpre-print
dc.peerreviewedyes
dc.publicationstatuspublisheden_US
dc.contributor.departmentÖzyeğin University
dc.contributor.ozuauthorKara, Engin
dc.identifier.volume76
dc.identifier.startpage29
dc.identifier.endpage37
dc.identifier.wosWOS:000366237500003
dc.identifier.doi10.1016/j.jmoneco.2015.07.002
dc.subject.keywordsDSGE models
dc.subject.keywordsSelection effect
dc.subject.keywordsReset inflation
dc.subject.keywordsCalvo
dc.subject.keywordsGTE
dc.identifier.scopusSCOPUS:2-s2.0-84951968403
dc.contributor.authorMale1
dc.relation.publicationcategoryArticle - International Refereed Journal - Institutional Academic Staff


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