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Bulletin of Monetary Economics and Banking

Document Type

Article

Abstract

This research is using survey method with focusing on the issue of how and what the determinants of price and wage rigidity, including uncertainty.In the case of price rigidity, we find that firm-cost related factors or supply side plays greater role than demand side of the market. This rule applies on middle up scale firm, firm with differentiated products and firm with large market coverage. The opposite will occur on small, homogenous product and small market coverage firm. We also confirm the downward rigidity phenomenon as price is ease to increase than decrease.Our findings imply several important impact on monetary policy effectiveness, monetary policy asymmetry, inflation-targeting and minimum wage determination. Keywords: Price rigidity, wage rigidityJEL: E31, E52, J31

First Page

237

Last Page

272

Creative Commons License

Creative Commons Attribution-NonCommercial 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

Bank Indonesia

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