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Markups, Trend positif d’inflation et Coûts en bien-être
[Markups, positive inflation trend and welfare costs]

Author

Listed:
  • Wabenga Yango, James
  • Nlemfu Mukoko, J.Blaise

Abstract

This work analyzes the implications of changing the parameters of Markups prices and wages, cost of welfare associated with a trend of inflation of 2 or 4 %. By using a New Keynesian model more comprehensive results show a relatively uniform low value of these parameters , gives costs well be quite modest. These costs are quite high conditionally the specific shock to investment compared to those generated by the shock neutral technology and the impact of monetary policy. Moreover, the costs of well be associated with an inflation trend starting from 2 to 4% , are much higher those associated with the trend of 0 to 2% .

Suggested Citation

  • Wabenga Yango, James & Nlemfu Mukoko, J.Blaise, 2015. "Markups, Trend positif d’inflation et Coûts en bien-être [Markups, positive inflation trend and welfare costs]," MPRA Paper 71686, University Library of Munich, Germany, revised Feb 2016.
    • Handle: RePEc:pra:mprapa:71686
    as

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    References listed on IDEAS

    as
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    5. Amano, Robert & Moran, Kevin & Murchison, Stephen & Rennison, Andrew, 2009. "Trend inflation, wage and price rigidities, and productivity growth," Journal of Monetary Economics, Elsevier, vol. 56(3), pages 353-364, April.
    6. Ascari, Guido & Ropele, Tiziano, 2007. "Optimal monetary policy under low trend inflation," Journal of Monetary Economics, Elsevier, vol. 54(8), pages 2568-2583, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Markups; positive trend of inflation; welfare cost;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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