@article{Predetermined:878,
      recid = {878},
      author = {Devereux, Michael and Yetman, James},
      title = {Predetermined Prices and the Persistent Effects of Money  on Output},
      publisher = {Bank of Canada},
      address = {2001},
      pages = {1 online resource (vi, 13 pages)},
      abstract = {This paper illustrates a model of predetermined pricing,  where firms set a fixed schedule of nominal prices at the  time of price readjustment, based on the work of Fischer  (1977). This type of price-setting specification cannot  produce any excess persistence in a fixed-duration model of  staggered prices, but we show that with a probabilistic  model of price adjustment, as in Calvo (1983), a  predetermined pricing specification can produce excess  persistence. Moreover, in response to a money shock, the  aggregate dynamics are very similar to those under a  specification of fixed prices, the assumption underlying  most recent dynamic sticky-price models.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/878},
      doi = {https://doi.org/10.34989/swp-2001-13},
}