Transitional dynamics in sticky-information general equilibrium models
Autor(a) principal: | |
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Data de Publicação: | 2012 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | https://ciencia.iscte-iul.pt/public/pub/id/22709 http://hdl.handle.net/10071/10482 |
Resumo: | We address the stability properties of a benchmark general equilibrium model involving pervasive stickiness on information updating. Dynamic behavior is determined essentially by two types of entities: on one hand, the degree of information stickiness that characterizes the price-setting decisions of firms and the consumption and labor supply decisions of households and, on the other hand, a policy parameter that indicates how the central bank acts in order to stabilize prices. Under perfect foresight, stability will hold and the degree of information stickiness simply indicates the velocity of convergence towards the steady-state. If the ability to forecast future events is less than perfect, stability will then depend on monetary policy-the main result is that the stickier the diffusion of information is, the more aggressive monetary policy must be in order to guarantee convergence towards the long-term steady-state. |
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Transitional dynamics in sticky-information general equilibrium modelsSticky-informationExpectationsPerfect foresightTransitional dynamicsStabilityWe address the stability properties of a benchmark general equilibrium model involving pervasive stickiness on information updating. Dynamic behavior is determined essentially by two types of entities: on one hand, the degree of information stickiness that characterizes the price-setting decisions of firms and the consumption and labor supply decisions of households and, on the other hand, a policy parameter that indicates how the central bank acts in order to stabilize prices. Under perfect foresight, stability will hold and the degree of information stickiness simply indicates the velocity of convergence towards the steady-state. If the ability to forecast future events is less than perfect, stability will then depend on monetary policy-the main result is that the stickier the diffusion of information is, the more aggressive monetary policy must be in order to guarantee convergence towards the long-term steady-state.Springer Verlag2015-12-23T12:39:00Z2012-01-01T00:00:00Z20122015-12-23T12:37:48Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://ciencia.iscte-iul.pt/public/pub/id/22709http://hdl.handle.net/10071/10482eng0927-7099Gomes, O.info:eu-repo/semantics/embargoedAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:45:11Zoai:repositorio.iscte-iul.pt:10071/10482Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:21:32.300041Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Transitional dynamics in sticky-information general equilibrium models |
title |
Transitional dynamics in sticky-information general equilibrium models |
spellingShingle |
Transitional dynamics in sticky-information general equilibrium models Gomes, O. Sticky-information Expectations Perfect foresight Transitional dynamics Stability |
title_short |
Transitional dynamics in sticky-information general equilibrium models |
title_full |
Transitional dynamics in sticky-information general equilibrium models |
title_fullStr |
Transitional dynamics in sticky-information general equilibrium models |
title_full_unstemmed |
Transitional dynamics in sticky-information general equilibrium models |
title_sort |
Transitional dynamics in sticky-information general equilibrium models |
author |
Gomes, O. |
author_facet |
Gomes, O. |
author_role |
author |
dc.contributor.author.fl_str_mv |
Gomes, O. |
dc.subject.por.fl_str_mv |
Sticky-information Expectations Perfect foresight Transitional dynamics Stability |
topic |
Sticky-information Expectations Perfect foresight Transitional dynamics Stability |
description |
We address the stability properties of a benchmark general equilibrium model involving pervasive stickiness on information updating. Dynamic behavior is determined essentially by two types of entities: on one hand, the degree of information stickiness that characterizes the price-setting decisions of firms and the consumption and labor supply decisions of households and, on the other hand, a policy parameter that indicates how the central bank acts in order to stabilize prices. Under perfect foresight, stability will hold and the degree of information stickiness simply indicates the velocity of convergence towards the steady-state. If the ability to forecast future events is less than perfect, stability will then depend on monetary policy-the main result is that the stickier the diffusion of information is, the more aggressive monetary policy must be in order to guarantee convergence towards the long-term steady-state. |
publishDate |
2012 |
dc.date.none.fl_str_mv |
2012-01-01T00:00:00Z 2012 2015-12-23T12:39:00Z 2015-12-23T12:37:48Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://ciencia.iscte-iul.pt/public/pub/id/22709 http://hdl.handle.net/10071/10482 |
url |
https://ciencia.iscte-iul.pt/public/pub/id/22709 http://hdl.handle.net/10071/10482 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
0927-7099 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/embargoedAccess |
eu_rights_str_mv |
embargoedAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Springer Verlag |
publisher.none.fl_str_mv |
Springer Verlag |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
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1799134776467128320 |