kustannusjäykkyyksien

Kustannusjäykkyyksien, often translated as cost rigidities or cost stickiness, refers to the phenomenon where the costs of inputs and the prices of outputs do not adjust immediately or fully to changes in economic conditions. This means that certain costs, such as wages, rent, or raw material prices, tend to remain stable for a period even when demand or other economic factors fluctuate. Conversely, output prices may also exhibit similar stickiness.

This phenomenon is a key concept in macroeconomics, particularly in explaining why monetary policy can have real effects on the economy in the short run. If prices and wages were perfectly flexible, any change in aggregate demand would be immediately absorbed by price adjustments, leading to no change in output or employment. However, with cost rigidities, a decrease in demand might lead firms to reduce output and employment rather than immediately lowering prices or wages. Similarly, an increase in demand might lead to increased production without immediate price hikes.

Several factors contribute to cost rigidities. These include menu costs, which are the expenses associated with changing prices, such as reprinting menus or updating price lists. Labor contracts and union agreements can also create wage rigidities, as wages are often set for a fixed period. Additionally, implicit contracts between employers and employees, and the desire to maintain customer relationships by offering stable prices, can contribute to price stickiness. Understanding cost rigidities is crucial for analyzing business cycle dynamics and the effectiveness of economic stabilization policies.