The Wage Stickiness, Economic Fluctuation and Chinese Inflation Target Shock——A Research Based on Stickiness DSGE Model
YUAN Jing1,2, CHEN Guo-jin2
1.School of Statistics, Shandong Institute of Business and Technology, Yantai 264005, China; 2.Wang Yanan Institute for Studies in Economics, Xiamen University, Xiamen 361005, China
Abstract Based on the DSGE model of Mankiw and etc. (2007) , the paper takes full account of price stickiness and wage stickiness, and uses the higher order lag DSGE model to evaluate the dynamic relationship between the output gap, inflation expectations, interest rates and wages, the results show that considering the price viscous and sticky wages DSGE model fit better macroeconomic volatility, the inflation expectations impact on macroeconomic variables cannot be ignored, the lag time of one year to two and a half years, wage stickiness characteristic features of price stickiness is not so obvious in our country, with the adjusting time of six months. The monetary policy shocks impact on inflation and interest rates is quick, inflation shock impact, the labor supply elasticity of substitution shocks and monetary policy shocks can explain the volatility of macroeconomic variables. The central bank mostly uses the price-based monetary policy instruments to consider the expected effects, policymaking and promptly announcing policies, thereby enhancing the transparency and long-term effectiveness of policies.
YUAN Jing,CHEN Guo-Jin. The Wage Stickiness, Economic Fluctuation and Chinese Inflation Target Shock——A Research Based on Stickiness DSGE Model. Economic Survey, 2016, 33(2): 0119.
2016, Vol. 33 
