TY  - UNPD
A1  - Andersen, Torben M.
T1  - Nominal rigidities and the optimal rate of inflation
T2  - Institut für Kapitalmarktforschung (Frankfurt am Main): CFS working paper series ; No. 1999,08
N2  - This paper analyses two reasons why inflation may interfere with price adjustment so as to create inefficiencies in resource allocation at low rates of inflation. The first argument is that the higher the rate of inflation the lower the likelihood that downward nominal rigidities are binding (the Tobin argument) which implies a non-linear Phillips-curve. The second argument is that low inflation strengthens nominal price rigidities and thus impairs the flexibility of the price system resulting in a less efficient resource allocation. It is argued that inflation can be too low from a welfare point of view due to the presence of nominal rigidities, but the quantitative importance is an open question.
T3  - CFS working paper series - 1999, 08 
KW  - nominal rigidities
KW  - allocative efficiency
KW  - optimal rate of inflation
KW  - Inflation Targeting
KW  - Preisstarrheit
KW  - Pareto-Optimum
KW  - Wohlfahrtseffekt
Y1  - 1999
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4531
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-9576
N1  - Paper prepared for the conference “Implementation of Price Stability”, Frankfurt, September 1998.
EP  - 26
PB  - Inst. für Kapitalmarktforschung
CY  - Frankfurt am Main
ER  -