English, Article, Journal or magazine article edition: Supply Shocks and Inflation Targeting Fabio Kanczuk

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Bookmark: http://trove.nla.gov.au/version/124644
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Supply Shocks and Inflation Targeting
Author
  • Fabio Kanczuk
Physical Description
  • preprint
Notes
  • We construct a dynamic general equilibrium model, calibrated to the Brazilian economy, in which a fraction of the firms set prices one quarter in advance. The artificial economy simulations generate series consistent with real data and with a typical estimation of a structural inflation-targeting model. We argue that these structural models specifications are incorrect for not considering supply shocks. In contrast, our model can separate supply and demand shocks effects, in addition to being (potentially) robust to the Lucas’ Critique.
  • Brazil, Real Business Cycles, Sticky Prices
  • RePEc:anp:en2003:b01
Language
  • English
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