演講者簡介 : Professor Gregory Phelan received his Ph.D. in Economics from Yale University in 2014. He is currently an Associate Professor at Williams College. His research interests are Macroeconomics, Financial Theory, Economic Theory, and International Finance.
演講摘要 : Under exogenous price stickiness, the divine coincidence suggests that the Central Bank can focus on inflation stabilization to maximize welfare. We show that endogenous price stickiness upsets this result. The pursuit of price stability may, in fact, increase price stickiness, flatten the Phillips curve, increase the distortions due to sticky prices, and lead to a welfare loss. Welfare can be improved if the Central Bank stabilizes the output gap directly (dual mandate). Our argument does not rely on markup shock or nominal wage rigidities. Instead, the key to these insights is the consideration of a strategic microfoundation for price stickiness.
