Journal ArticleDOI
Staggered prices in a utility-maximizing framework
TLDR
In this article, the authors developed a model of staggered prices along the lines of Phelps (1978) and Taylor (1979, 1980), but utilizing an analytically more tractable price-setting technology.About:
This article is published in Journal of Monetary Economics.The article was published on 1983-09-01. It has received 8580 citations till now. The article focuses on the topics: Nominal rigidity & Taylor rule.read more
Citations
More filters
Journal ArticleDOI
The 6D Bias and the Equity Premium Puzzle
Xavier Gabaix,David Laibson +1 more
TL;DR: In this paper, the authors analytically characterize the dynamic properties of an economy composed of consumers who have such delayed updating and show that the model matches most properties of aggregate consumption and equity returns, including new evidence that the covariance between ln(h/Ct) and Rt+1 slowly rises with h.
Journal ArticleDOI
A critical reconsideration of the foundations of monetary policy in the new consensus macroeconomics framework
TL;DR: In this article, a critical appraisal of the role of monetary policy in the context of the New Consensus in Macroeconomics (NCM) is presented, with a critical evaluation of the IS curve in the NCM and the classical dichotomy.
Journal ArticleDOI
Inflation Dynamics with Search Frictions: A Structural Econometric Analysis
TL;DR: In this article, the role of real marginal cost components implied by search frictions in the labor market is investigated, and it is shown that mark-up shocks are the dominant force in labor market fluctuations.
Posted Content
Persistence, the Transmission Mechanism and Robust Monetary Policy
TL;DR: In this article, the authors explore the impact of nominal and real persistence on the transmission process of various shocks in an estimated DSGE model of the euro area and analyze its impact on optimal monetary policy.
Journal ArticleDOI
New measures of the output gap based on the forward-looking new Keynesian Phillips curve ☆
TL;DR: In this article, a bivariate unobserved component model was proposed to extract new estimates of the output gap in the US. The estimates confirm the presence of a large and persistent cyclical component.
References
More filters
Book
The Theory of Matrices
TL;DR: In this article, the Routh-Hurwitz problem of singular pencils of matrices has been studied in the context of systems of linear differential equations with variable coefficients, and its applications to the analysis of complex matrices have been discussed.
Journal ArticleDOI
Aggregate Dynamics and Staggered Contracts
TL;DR: In this article, the authors show that staggered wage contracts as short as 1 year are capable of generating the type of unemployment persistence which has been observed during postwar business cycles in the United States.
Journal ArticleDOI
"Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule
Thomas J. Sargent,Neil Wallace +1 more
TL;DR: In this paper, alternative monetary policies are analyzed in an ad hoc macroeconomic model in which the public's expectations about prices are rational, and it turns out that the probility distribution of output is independent of the particular deterministic money supply rule in effect.
Book
Public Investment, the Rate of Return, and Optimal Fiscal Policy
Kenneth J. Arrow,Mordecai Kurz +1 more
TL;DR: In this paper, a theory of "controllability" is developed and injected into public economics and growth models to analyze optimal public expenditures in the context of modern growth theory, and a model of optimal growth with public capital is proposed.