Inflation dynamics: A cross-country investigation

Journal of Monetary Economics

Volumn 54, Issue 7, 2007, Pages 2004-2031

  Wang, Pengfei ^a   Wen, Yi ^b  

^a Cornell University ^*  (United States)

^b FEDERAL RESERVE BANK OF ST LOUIS   (United States)

Author keywords

Inflation comovement; Inflation dynamics; Money; Sticky information; Sticky prices

Indexed keywords

EID: 34548851162     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jmoneco.2006.07.007     Document Type: Article

References (36)

1. Andrés J., López-Salido J.D., and Nelson E. Sticky-price models and the natural rate hypothesis. Journal of Monetary Economics 52 5 (2005) 1025-1053
2. Backus D., Kehoe P., and Kydland F. International real business cycles. Journal of Political Economy 100 4 (1992) 745-775
3. Ball L. Credible disinflation with staggered price-setting. American Economic Review 84 1 (1994) 282-289
4. Ball L., Mankiw N.G., and Reis R. Monetary policy for inattentive economies. Journal of Monetary Economics 52 4 (2005) 703-725
5. Blanchard O., and Kahn C. The solution of linear difference models under rational expectations. Econometrica 48 5 (1980) 1305-1312
6. Calvo G. Staggered prices in a utility-maximizing framework. Journal of Monetary Economics 12 3 (1983) 383-398
7. Chari V.V., Kehoe P., and McGrattan E. Sticky price models of the business cycle: Can the contract multiplier solve the persistence problem?. Econometrica 68 5 (2000) 1151-1179
8. Christiano L., Eichenbaum M., and Evans C. Nominal rigidities and the dynamic effects of a shock to monetary policy. Journal of Political Economy 113 1 (2005) 1-45
9. Ciccarelli, M., Mojon, B., 2005. Global inflation. Working Paper 537, European Central Bank.
10. Coibion, O., 2006. Inflation inertia in sticky information models. Contribution to Macroeconomics 6(1), Article 1.
11. Den Haan W., and Sumner S. The comovement between real activity and prices in the G7. European Economic Review 48 6 (2004) 1333-1347
12. Dotsey M., and King R.G. Implications of state-dependent pricing for dynamic macroeconomic models. Journal of Monetary Economics 52 1 (2005) 213-242
13. Fitzgerald, T.J., 1999. Money growth and inflation: how long is the long-run?. Federal Reserve Bank of Cleveland Economic Commentary (August).
14. Fuhrer J., and Moore G. Inflation persistence. Quarterly Journal of Economics 110 1 (1995) 127-159
15. Gavin W., Keen B., and Pakko M. The monetary instrument matters. Federal Reserve Bank of St. Louis Review (September/October) 87 5 (2005) 633-658
16. Guo H., Yang J., and Wang Z. International transmission of inflation among G-7 countries: A data-determined VAR analysis. Journal of Banking and Finance 30 10 (2006) 2681-2700
17. Jensen, C., 2005. Monetary policy with sticky information. Working Paper, Southern Methodist University.
18. Keen, B., 2005. Sticky price and sticky information price setting models: what is the difference? Working Paper, University of Oklahoma.
19. King R.G., and Watson M. The solution of singular linear difference systems under rational expectations. International Economic Review 39 4 (1998) 1015-1026
20. Koenig, E., 2004. Optimal monetary policy in economies with "sticky-information" wages. Working Paper 0405, Federal Reserve Bank of Dallas.
21. Kollmann R. Explaining international comovements of output and asset returns: the role of money and nominal rigidities. Journal of Economic Dynamics and Control 25 10 (2001) 1547-1583
22. Kydland F., and Prescott E. Business cycles: real facts and a monetary myth. Federal Reserve Bank of Minneapolis Quarterly Review 14 2 (1990) 3-18
23. Mankiw N.G., and Reis R. Sticky information versus sticky prices: a proposal to replace the New Keynesian Phillips curve. Quarterly Journal of Economics 117 4 (2002) 1295-1328
24. Mankiw N.G., Reis R., and Wolfers J. Disagreement about inflation expectations. In: Bernanke B.S., and Rotemberg J.J. (Eds). NBER Macroeconomics Annual (2003), MIT Press, Cambridge, MA 209-248
25. McCallum, B., 1998. Stickiness: a comment Carnegie-Rochester Conference Series on Public Policy vol. 49, pp. 357-363.
26. Phillips A.W. The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1861-1957. Economica 25 100 (1958) 283-299
27. Sims C. Solving linear rational expectations models. Computational Economics 20 1-2 (2002) 1-20
28. Taylor J. Aggregate dynamics and staggered contracts. Journal of Political Economy 88 1 (1980) 1-23
29. Trabandt, M., 2005. Sticky information vs. sticky prices: a horse race in a DSGE framework. Working Paper, Humboldt University, Berlin.
30. Wang P.F., and Wen Y. Endogenous money or sticky prices?-Comment on monetary non-neutrality and inflation dynamics. Journal of Economic Dynamics and Control 29 8 (2005) 1361-1383
31. Wang, P.F., Wen, Y., 2005b. Another look at sticky prices and output persistence. Journal of Economic Dynamics and Control 30 (12), 2533-2552.
32. Wang, P.F., Wen, Y., 2005c. Inflation and money: a puzzle, Working paper 2005-076B, Federal Reserve Bank of St. Louis.
33. Wang, P.F., Wen, Y., 2006. Solving linear difference systems with lagged expectations by a method of undetermined coefficients. Working paper 2006-003C, Federal Reserve Bank of St. Louis.
34. Wen, Y., 2005. By force of demand: explaining international comovements. Journal of Economic Dynamics and Control, forthcoming.
35. Woodford, M., 2001. Imperfect common knowledge and the effects of monetary policy. NBER Working paper 8673.
36. Woodford M. Interest and Prices: Foundations of a Theory of Monetary Policy (2003), Princeton University Press, Princeton, NJ