Bounded rationality in rules of price adjustment and the Phillips Curve
Ding, S.
(2018-02-19 - 2018-02-24)
Bounded rationality in rules of price adjustment and the Phillips Curve
[Poster]. LSE Research Festival 2018, London School of Economics, London, United Kingdom, GBR.
This paper examines an alternative microfoundation for the Phillips Curve by considering a possibility where price setters are constrained by the length of the time horizon over which they can form rational expectations, and they use a combination of the central bank's inflation target and past prices as heuristics.
| Item Type | Conference or Workshop Item (Poster) |
|---|---|
| Copyright holders | © 2018 The Author |
| Departments | LSE |
| Date Deposited | 3 May 2019 |
| URI | https://researchonline.lse.ac.uk/id/eprint/100699 |