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• W1570600492 abstract "This paper explores implications of nominal rigidity characterized by a non-constant hazard function for aggregate dynamics. I derive the NKPC under an arbitrary hazard function and parameterize it with the Weibull duration model. The resulting Phillips curve involves lagged inflation and lagged expectations. It nests the Calvo NKPC as a limiting case in the sense that the effects of both terms are canceled out under the constant-hazard assumption. Furthermore, I find lagged inflation always has negative coefficients, thereby making it impossible to interpret inflation persistence as intrinsic. The numerical evaluation shows that the increasing hazard function leads to hump-shaped impulse responses of in‡ation to monetary shocks, and output leads inflation." @default.
• W1570600492 created "2016-06-24" @default.
• W1570600492 creator A5086049530 @default.
• W1570600492 date "2009-05-29" @default.
• W1570600492 modified "2023-09-25" @default.
• W1570600492 title "Non-constant hazard function and inflation dynamics" @default.
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• W1570600492 doi "https://doi.org/10.18452/4195" @default.
• W1570600492 hasPublicationYear "2009" @default.
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