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
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Sticky-price models and the natural rate hypothesis ☆
Javier Andrés,Javier Andrés,J. David López-Salido,J. David López-Salido,Edward Nelson,Edward Nelson +5 more
TL;DR: In this article, a dynamic optimizing business cycle model whose price-setting behavior satisfies the natural rate hypothesis is presented, and the empirical estimates of the real side of the economy are similar whichever price adjustment specification is chosen.
Journal ArticleDOI
Welfare Effects of a Monetary Union: The Role of Trade Openness
TL;DR: In this article, the welfare effects of a monetary union (MU) compared to a e oating exchange rate regime, using a quantitative business cycle model of a two-country world with sticky prices, were evaluated.
Posted Content
Forecasting Performance of an Open Economy Dynamic Stochastic General Equilibrium Model
TL;DR: In this paper, the forecasting performance of an open economy DSGE model, estimated with Bayesian methods, for the Euro area during 1994Q1-2002Q4 was compared with various reduced form forecasting models such as vector autoregressions (VAR) and vector error correction models (VECM), estimated both by maximum likelihood and two different Bayesian approaches, and traditional benchmark models, e.g. the random walk.
Journal ArticleDOI
Oil price shocks and the optimality of monetary policy
TL;DR: The authors found that monetary policy amplified the negative effect of the oil price shock and that the optimal response to the price increase would have been to raise inflation and interest rates above what had been seen in the past.
References
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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.