TY  - BOOK
AU  - Safouane Ben Aïssa,Mohamed
AU  -  Musy,Olivier
TI  - The Persistence of Inflation in the Neo-Keynesian Models
PY  - 2005///.
							
N1  - 78
N2  - In this paper, we derive the dynamics of inflation from the various price adjustment scenarios encountered in neo-Keynesian literature. For each model, we will calculate inflation and product response following a money supply shock on the economic growth rate. Our observation will reveal that only two models correctly reproduce the stylized facts associated with this kind of money supply shock: the first model is Mankiw and Reis’s model with predetermined prices (2002), and the second model is the fixed-price model of Gali and Gertler (1999). None of the other alternatives, including the fixed-price model of Fuhrer and Moore (1995), are able to reproduce correctly a sufficient persistence of inflation. This shows that in the fixed-price model, the structure of rigidity chosen is as important for the degree of inflation persistence as the presence or absence of inflation lags is in the dynamic model
UR  - https://shs.cairn.info/journal-recherches-economiques-de-louvain-2005-2-page-175?lang=en
ER  -