Endogenous price flexibility and optimal monetary policy

Article, Preprint English OPEN
Ozge Senay; Alan Sutherland;
  • Journal: volume 66,issue 4,pages1,121-1,144
  • Related identifiers: doi: 10.1093/oep/gpt040
  • Subject: HB Economic Theory | Welfare, Endogenous Price Flexibility, Optimal Monetary Policy. | HB | BDQ
    • jel: jel:E31 | jel:E52

Much of the literature on optimal monetary policy uses models in which the degree of nominal price flexibility is exogenous. There are, however, good reasons to suppose that the degree of price flexibility adjusts endogenously to changes in monetary conditions. This art... View more
  • References (14)
    14 references, page 1 of 2

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