Download This PaperCan a DSGE Model Explain a Costly Disinflation?
University of Milan Bicocca Department of Economics, Management and Statistics Working Paper No. 306
16 Pages Posted: 6 Aug 2015
Date Written: July 2015
Abstract
This paper shows that a medium-scale DSGE model is able to explain a contemporaneous reduction of output and consumption during a disinflation policy, as it is in the empirical evidence. To this aim, we introduce Rotemberg (1982) adjustment costs and the limited asset market participation assumption.
Keywords: Disinflation, Rotemberg price adjustment, Monetary Policy
JEL Classification: E31, E5
Suggested Citation: Suggested Citation
Ferrara, Maria and Tirelli, Patrizio, Can a DSGE Model Explain a Costly Disinflation? (July 2015). University of Milan Bicocca Department of Economics, Management and Statistics Working Paper No. 306, Available at SSRN: https://ssrn.com/abstract=2640114 or http://dx.doi.org/10.2139/ssrn.2640114
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.