Klachkova O.A. IMPACT OF INFLATIONARY EXPECTATIONS ON LONG-RUN CONSEQUENCES OF INFLATION

The Bulletin of the Institute of Economics of the Russian Academy of Sciences № 1/2024. Finance.

Olga A. Klachkova

Cand. Sci. (Econ.), Associate Professor at the Department of Mathematical Methods of Economic Analysis, Faculty of Economics, Lomonosov Moscow State University, Moscow, Russia

ORCID: 0000-0002-5300-7930

IMPACT OF INFLATIONARY EXPECTATIONS ON LONG-RUN CONSEQUENCES OF INFLATION

113-123

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Abstract

In this paper we propose a dynamic general equilibrium model on the basis of Sidrausky's model, which takes into account the process of formation of inflationary expectations by consumers and firms. As a result of the model analysis we obtain that higher expected inflation rate leads to the lower output per employee. The article also provides a comparative characteristics of the impact of the monetary policy on the long-term equilibrium, depending on the formation of inflationary expectations of economic agents and the policy of setting the Central Bank's key rate.

Keywords: inflation, inflationary expectations, economic growth, dynamic general equilibrium model, menu costs.

JEL: E31, E52, O42

EDN: SIENOD

DOI: https://doi.org/10.52180/2073-6487_ 2024_1_113_123

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Manuscript submission date: 10.01.2024

For citation:

Klachkova O.A. Impact of inflationary expectations on long-run consequences of inflation // Vestnik Instituta Ekonomiki Rossiyskoy Akademii Nauk. 2024. № 1. Pp. 113-123. (In Russ.). https://doi.org/10.52180/2073-6487_2024_1_113_123 EDN: SIENOD

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