Disinflation in a DSGE perspective: Sacrifice ratio or welfare gain ratio?

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2012
Volume: 36
Issue: 2
Pages: 169-182

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

When used to examine disinflation monetary policies, the current workhorse dynamic stochastic general equilibrium model of business cycle fluctuations is able to quantitatively account for the main stylized facts in terms of recessionary effects and sacrifice ratio. We complement the transitional analysis of the short-run costs with a rigorous welfare evaluation and show that, despite the long-lasting economic downturn, disinflation entails non-zero overall welfare gains.

Technical Details

RePEc Handle
repec:eee:dyncon:v:36:y:2012:i:2:p:169-182
Journal Field
Macro
Author Count
2
Added to Database
2026-01-24