Inflation, Information Rigidity, and the Sticky Information Phillips Curve
Por César Carrera ; Ramírez-Rondán, Nelson
December 2013
Idioma: English
Keywords
- inflation
- Phillips Curve
- sticky information
- Threshold model
Clasificación JEL:
- C22
- C26
- E31
- E52
Resumen:
One of the most important structural relationships for policy makers is the Phillips curve; thus, this topic is the focus of ongoing theoretical and empirical research. We estimate the degree of information stickiness implied by the sticky information Phillips curve proposed by Mankiw and Reis (2002). Using threshold models we identify regimes of high and low inflation and find that each regime is associated with a specific degree of information stickiness. We find evidence that agents update information faster when inflation is higher.