【Macro/Finance Webinar】A Monetary Theory of Price Adjustment

  • 研討會日期 : 2023-05-12
  • 時間 : 16:00
  • 主講人 : Professor Tore Ellingsen
  • Online : https://hkbu.zoom.us/j/293341034
  • 演講者簡介 : Professor Tore Ellingsen received his PhD from the London School of Economics. He is currently Ragnar Söderberg Professor of Economics at the Stockholm School of Economics. His research interests are institutional, organizational and behavioral economics.
  • 演講摘要 : In a canonical monetary macro model, the supply of nominal assets affects the price level. We introduce price posting and search frictions. Despite costless price adjustment, insufficient search incentives prevent market clearing, and there is a finite interval of constant-inflation price paths. Under stable inflation expectations, small shocks to technology or policy affect quantities but not prices. However, large enough shocks - or accumulations of smaller shocks - move the entire interval of equilibrium price paths beyond the previous path, forcing price adjustment. Even if shocks are temporary, these price level changes are permanent. Absent a policy response, excess supply persists.