Date: 2006
Type: Working Paper
An Evolutionary Theory of Inflation Inertia
Working Paper, EUI ECO, 2006/33
ANAGNOSTOPOULOS, Alexis, LICANDRO, Omar, An Evolutionary Theory of Inflation Inertia, EUI ECO, 2006/33 - https://hdl.handle.net/1814/6397
Retrieved from Cadmus, EUI Research Repository
We provide a simple theory of inflation inertia in a staggered price setting frame-
work a la Calvo (1983). Contrary to Calvo's formulation, the frequency of price
changes is allowed to vary according to an evolutionary criterion. Inertia is the
direct result of gradual adjustment in this frequency following a permanent change
in the rate of money growth.
Cadmus permanent link: https://hdl.handle.net/1814/6397
ISSN: 1725-6704
Series/Number: EUI ECO; 2006/33
Publisher: European University Institute
