Calvo price-setting framework
E915169
The Calvo price-setting framework is a macroeconomic model of staggered price adjustment in which only a random fraction of firms can change their prices in any given period, generating nominal rigidity and realistic inflation dynamics.
All labels observed (2)
| Label | Occurrences |
|---|---|
| Calvo price-setting framework canonical | 1 |
| Calvo pricing model | 1 |
How this entity was disambiguated
This entity first appeared as the object of triple T11269944 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: Calvo price-setting framework Context triple: [Monetary Policy, Inflation, and the Business Cycle, usesModelType, Calvo price-setting framework]
-
A.
Interest and Prices: Foundations of a Theory of Monetary Policy
Interest and Prices: Foundations of a Theory of Monetary Policy is a highly influential macroeconomics book that develops a rigorous New Keynesian framework for analyzing monetary policy and inflation dynamics.
-
B.
Inflation Targeting (co-authored)
"Inflation Targeting (co-authored)" is an influential economics book that analyzes and advocates the use of explicit inflation targets as a framework for modern monetary policy.
-
C.
Phillips curve framework
The Phillips curve framework is a macroeconomic concept that posits an inverse relationship between inflation and unemployment, shaping policymakers’ understanding of inflation dynamics and trade-offs in the postwar era.
-
D.
The New Keynesian Phillips Curve: Time Series Evidence from the Euro Area
"The New Keynesian Phillips Curve: Time Series Evidence from the Euro Area" is an influential empirical economics paper by Jordi Galí that tests and supports New Keynesian inflation dynamics using euro area data.
-
E.
Monetary policy of Chile
The Monetary policy of Chile is the framework and actions through which Chile’s central bank manages interest rates and liquidity to maintain low and stable inflation while supporting sustainable economic growth.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: Calvo price-setting framework Target entity description: The Calvo price-setting framework is a macroeconomic model of staggered price adjustment in which only a random fraction of firms can change their prices in any given period, generating nominal rigidity and realistic inflation dynamics.
-
A.
Interest and Prices: Foundations of a Theory of Monetary Policy
Interest and Prices: Foundations of a Theory of Monetary Policy is a highly influential macroeconomics book that develops a rigorous New Keynesian framework for analyzing monetary policy and inflation dynamics.
-
B.
Inflation Targeting (co-authored)
"Inflation Targeting (co-authored)" is an influential economics book that analyzes and advocates the use of explicit inflation targets as a framework for modern monetary policy.
-
C.
Phillips curve framework
The Phillips curve framework is a macroeconomic concept that posits an inverse relationship between inflation and unemployment, shaping policymakers’ understanding of inflation dynamics and trade-offs in the postwar era.
-
D.
The New Keynesian Phillips Curve: Time Series Evidence from the Euro Area
"The New Keynesian Phillips Curve: Time Series Evidence from the Euro Area" is an influential empirical economics paper by Jordi Galí that tests and supports New Keynesian inflation dynamics using euro area data.
-
E.
Monetary policy of Chile
The Monetary policy of Chile is the framework and actions through which Chile’s central bank manages interest rates and liquidity to maintain low and stable inflation while supporting sustainable economic growth.
- F. None of above. chosen
Statements (44)
| Predicate | Object |
|---|---|
| instanceOf |
New Keynesian pricing assumption
ⓘ
macroeconomic model ⓘ price-setting framework ⓘ |
| assumes | geometric distribution of price durations ⓘ |
| contrastsWith |
Taylor staggered contracts
ⓘ
state-dependent pricing models ⓘ |
| enables | tractable log-linearization around steady state ⓘ |
| field |
macroeconomics
ⓘ
monetary economics ⓘ |
| hasKeyAssumption |
a fixed fraction of firms cannot adjust prices in each period
ⓘ
firms are monopolistic competitors ⓘ firms choose prices to maximize expected discounted profits ⓘ households have rational expectations ⓘ nominal prices are set in terms of money ⓘ probability of being allowed to reset price is independent of firm history ⓘ |
| hasKeyFeature |
constant probability of price adjustment each period
ⓘ
forward-looking inflation dynamics ⓘ fraction of firms keep prices fixed each period ⓘ menu-cost-free nominal rigidity ⓘ microfoundations for the New Keynesian Phillips curve ⓘ nominal rigidity ⓘ price dispersion across firms ⓘ random opportunity for price adjustment ⓘ staggered price adjustment ⓘ time-dependent pricing ⓘ |
| implies |
New Keynesian Phillips curve
ⓘ
linked to:
New Keynesian Phillips Curve
average duration of prices is inverse of adjustment probability ⓘ inflation depends on expected future inflation ⓘ inflation depends on real marginal cost or output gap ⓘ |
| influenced | modern central bank macroeconomic models ⓘ |
| introducedBy | Guillermo A. Calvo ⓘ |
| introducedIn | 1983 ⓘ |
| mathematicallyCharacterizedBy |
Calvo parameter for price stickiness
ⓘ
hazard rate of price adjustment ⓘ |
| namedAfter | Guillermo A. Calvo ⓘ |
| relatedConcept |
Phillips curve
ⓘ
linked to:
Phillips curve framework
dynamic stochastic general equilibrium models ⓘ monetary policy transmission ⓘ nominal rigidity ⓘ sticky prices ⓘ |
| usedIn |
New Keynesian DSGE models
ⓘ
linked to:
New Keynesian Phillips Curve
business cycle models ⓘ inflation dynamics studies ⓘ monetary policy analysis ⓘ |
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: Calvo price-setting framework Description of subject: The Calvo price-setting framework is a macroeconomic model of staggered price adjustment in which only a random fraction of firms can change their prices in any given period, generating nominal rigidity and realistic inflation dynamics.
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
Monetary Policy, Inflation, and the Business Cycle
→
usesModelType
→
Calvo price-setting framework
ⓘ
linked to: Calvo price-setting framework