Journal of Monetary Economics
Опубликовано на портале: 22-10-2007Albert S. Dexter, Maurice D. Levi, Barrie R. Nault Journal of Monetary Economics. 2002. Vol. 49. No. 4. P. 797-821.
This paper finds that approximately one-third of the items in the CPI are governed by previous termprice regulationsnext term that can slow and add noise to the response of previous termpricesnext term to changes in cost or demand conditions. Consequently, previous termregulationnext term is a possible partial explanation of previous termsticky pricesnext term in the overall rate of inflation, and delayed response to changes in the money supply. A survey is used to decompose the CPI into freely determined and regulated sub-components. Evidence is provided that previous termpricesnext term in the regulated sector of the economy respond approximately two quarters after previous termpricesnext term in the freely determined sector, thereby contributing a source of stickiness in overall inflation and in the response of inflation to monetary policy