Price Rigidities and Relative PPP

Price rigidities and the relative PPP

Journal of Monetary Economics ◽

10.1016/j.jmoneco.2019.09.010 ◽

2020 ◽

Vol 116 ◽

pp. 104-116

Author(s):

Andrés Blanco ◽

Javier Cravino

Keyword(s):

Price Rigidities ◽

Relative Ppp

Deep Habits, Price Rigidities and the Consumption Response to Government Spending

SSRN Electronic Journal ◽

10.2139/ssrn.2351642 ◽

2013 ◽

Cited By ~ 3

Author(s):

Punnoose Jacob

Keyword(s):

Government Spending ◽

Price Rigidities

Price rigidities, inventories, and growth fluctuations

Managerial and Decision Economics ◽

10.1002/mde.1325 ◽

2007 ◽

Vol 28 (6) ◽

pp. 619-631

Author(s):

Chris Tsoukis ◽

Naveed Naqvi

Keyword(s):

Price Rigidities

Hierarchical delays as a source of nominal price rigidities: evidence from the microcomputer industry

Managerial and Decision Economics ◽

10.1002/mde.1371 ◽

2007 ◽

Vol 28 (7) ◽

pp. 803-815 ◽

Cited By ~ 2

Author(s):

Michael J. Hicks

Keyword(s):

Price Rigidities

Extracting Inflation from Stock Returns to Test Purchasing Power Parity

The American Economic Review ◽

10.1257/0002828053828554 ◽

2005 ◽

Vol 95 (1) ◽

pp. 255-276 ◽

Cited By ~ 10

Author(s):

Bhagwan Chowdhry ◽

Richard Roll ◽

Yihong Xia

Keyword(s):

Stock Returns ◽

Purchasing Power Parity ◽

Strong Support ◽

Commodity Price ◽

Relative Price ◽

Purchasing Power ◽

Power Parity ◽

Price Inflation ◽

Short Run ◽

Relative Ppp

Relative purchasing power parity (PPP) holds for pure price inflations, which affect prices of all goods and services by the same proportion, while leaving relative prices unchanged. Pure price inflations also affect nominal returns of all traded financial assets by exactly the same amount. Recognizing that relative PPP may not hold for the official inflation data constructed from commodity price indices because of relative price changes and other frictions that cause prices to be “sticky,” we provide a novel method for extracting a proxy for realized pure price inflation from stock returns. We find strong support for relative PPP in the short run using the extracted inflation measures.

Equilibrium Existence Results for Economies with Price Rigidities

Theory and Decision Library - Static and Dynamic Aspects of General Disequilibrium Theory ◽

10.1007/978-1-4615-6251-1_4 ◽

1996 ◽

pp. 121-186 ◽

Cited By ~ 1

Author(s):

P. Jean-Jacques Herings

Keyword(s):

Existence Results ◽

Equilibrium Existence ◽

Price Rigidities

Dynamic Auction for Efficient Competitive Equilibrium under Price Rigidities

AI 2011: Advances in Artificial Intelligence - Lecture Notes in Computer Science ◽

10.1007/978-3-642-25832-9_82 ◽

2011 ◽

pp. 809-818 ◽

Cited By ~ 1

Author(s):

Junwu Zhu ◽

Dongmo Zhang

Keyword(s):

Competitive Equilibrium ◽

Price Rigidities

Capital-market consequences of asymmetric output-price rigidities

Journal of Monetary Economics ◽

10.1016/j.jmoneco.2019.03.009 ◽

2020 ◽

Vol 114 ◽

pp. 221-239 ◽

Cited By ~ 1

Author(s):

Jin Xie

Keyword(s):

Capital Market ◽

Output Price ◽

Price Rigidities ◽

Market Consequences

Trend inflation, wage and price rigidities, and productivity growth

Journal of Monetary Economics ◽

10.1016/j.jmoneco.2009.03.001 ◽

2009 ◽

Vol 56 (3) ◽

pp. 353-364 ◽

Cited By ~ 28

Author(s):

Robert Amano ◽

Kevin Moran ◽

Stephen Murchison ◽

Andrew Rennison

Keyword(s):

Productivity Growth ◽

Trend Inflation ◽

Price Rigidities

ON THE EFFECTIVENESS OF FISCAL DEVALUATIONS IN A MONETARY UNION

Macroeconomic Dynamics ◽

10.1017/s136510051800010x ◽

2018 ◽

Vol 23 (8) ◽

pp. 3424-3456 ◽

Cited By ~ 1

Author(s):

Anna Lipińska ◽

Leopold von Thadden

Keyword(s):

Monetary Policy ◽

Monetary Union ◽

Financial Integration ◽

Fiscal Policies ◽

Consumption Tax ◽

Welfare Costs ◽

Long Run ◽

Price Rigidities ◽

Short Run ◽

Labor Taxes

This paper examines the effects of fiscal devaluations in a model of a monetary union characterized by national fiscal policies and supranational monetary policy. We show that a revenue-neutral permanent tax shift in one country, which raises its consumption tax to finance a cut to labor taxes, increases welfare of the monetary union in the long run. The distribution of gains among countries depends on their degree of financial integration. We also document that price rigidities result in short-run welfare costs.