Endogenous Price Stickiness, Trend Inflation, and Macroeconomic Stability
研究了在Calvo模型中，当价格粘性程度内生决定时，高趋势通胀导致均衡不确定性的可能性降低，关键因素是新凯恩斯菲利普斯曲线隐含的产出长期通胀弹性。
Previous studies show that higher trend inflation is more likely to induce indeterminacy of equilibrium in sticky‐price models based on micro evidence that each period a fraction of prices is kept unchanged. This paper demonstrates that when the degree of price stickiness is endogenously determined in a Calvo model, indeterminacy caused by higher trend inflation is less likely. A key factor for determinacy is the long‐run inflation elasticity of output implied by the New Keynesian Phillips curve. This elasticity declines substantially with higher trend inflation in the case of exogenously given price stickiness, whereas in the case of endogenous price stickiness the decline in the elasticity is mitigated because higher trend inflation leads to a higher probability of price adjustment.