NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Argia Sbordone

Macroeconomic & Monetary Studies
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045-0001

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org

NBER Working Papers and Publications

January 2009Comment on "Expectations, Monetary Policy, and the Misalignment of Traded Goods Prices"
in NBER International Seminar on Macroeconomics 2007, Richard Clarida and Francesco Giavazzi, organizers
October 2007Globalization and Inflation Dynamics: the Impact of Increased Competition
w13556
This paper analyzes the potential effect of global market competition on inflation dynamics. It does so through the lens of the Calvo model of staggered price-setting, which implies that inflation depends on expected future inflation and a measure of marginal costs. I modify the assumption of a constant elasticity of demand, standard in this model, to provide a channel through which an increase in the number of traded goods may affect the degree of strategic complementarity in price setting, and hence alter the dynamic response of inflation to marginal costs. I first discuss the behavior of the variables that drive the impact of trade openness on this response, and then I evaluate whether an increase in the variety of traded goods of the size observed in the US in the `90s might have a siz...

Published: Globalization and Inflation Dynamics: The Impact of Increased Competition, Argia M. Sbordone. in International Dimensions of Monetary Policy , Galí and Gertler. 2009

June 2007Globalization and Inflation Dynamics: The Impact of Increased Competition
in International Dimensions of Monetary Policy , Jordi Galí and Mark J. Gertler, editors
 
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