Central Bank of Chile working paper deals with pricing norms
A working paper released by the Central Bank of Chile dispels the standard assumption in macroeconomics that pricing decisions are taken by single-product firms.
The paper's author, Ernesto Pastén, explains how he augmented the rational inattention model of price-setting (in which firms have a limited capacity to process information) to allow firms to produce multiple goods.
The research highlights the economies of scale in the use of information that arise in this context, which firms exploit
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Financial Stability
‘Sandpile’ model makes case for supervisory intervention
IMF paper finds that arranging sales of failing banks is best policy, despite some side effects
Syria imports banknotes from Russia
Central bank says media reports of amounts involved are ‘exaggerated’
Nigerian central bank to cap fees for ATM withdrawals
Move meant to curb rising costs of withdrawals
Trump, the Fed and climate’s undeniable systemic risk
Experts disagree on the impact of the Fed’s withdrawal from the NGFS but are united about climate change’s devastating effect on the financial system
Central bankers from Americas respond to Trump’s tariff shock
Canadian, Mexican, Colombian and Fed governors speak of post-Covid realities at BIS conference
Banks’ leverage ratio ‘over-calibrated’, says Fed’s Bowman
Heavy capital requirements causing illiquidity in Treasury market, governor says
Mutual fund investments support green transition – BIS paper
Study of the impact of news on investment flows finds funds are not guilty of “greenwashing”
Tightening increases instability after supply shocks – IMF study
Authors say when other tools are too costly, rate hikes should be less aggressive