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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Exchange rate pass-through and inflation: A nonlinear time series analysis
TL;DR: This article investigated the relationship between the exchange rate pass-through (ERPT) and inflation by estimating a nonlinear time series model based on a simple theoretical model of ERPT determination, and showed that the dynamics of the ERPT can be well approximated by a class of smooth transition autoregressive models using the past inflation rate as a transition variable.
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Estimates of the Open Economy New Keynesian Phillips Curve for Euro Area Countries
TL;DR: In this article, the authors extended the existing literature on the open economy New Keynesian Phillips Curve by incorporating three different factors of production, domestic labor and imported as well as domestically produced intermediate goods, into a general model which nests existing closed economy and open economy models.
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Higher-Order Perturbation Solutions to Dynamic, Discrete-Time Rational Expectations Models
TL;DR: In this paper, the authors present an algorithm and software routines for computing nth order Taylor series approximate solutions to dynamic, discrete-time rational expectations models around a nonstochastic steady state.
Journal ArticleDOI
Euro-dollar real exchange rate dynamics in an estimated two-country model: An assessment
Pau Rabanal,Vicente Tuesta +1 more
TL;DR: In this article, the authors estimate a two-country model using data for the United States and the Euro Area, and study the importance of such alternative assumptions in fitting the data, and show that a model with local currency pricing and incomplete markets does a good job in explaining real exchange rate volatility, and fits the dynamics of domestic variables well.
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Exogenous Information, Endogenous Information and Optimal Monetary Policy ∗
Luigi Paciello,Mirko Wiederholt +1 more
TL;DR: In this article, the authors consider two models: a model with exogenous dispersed information and a rational inattention model, and they show that in both models, there is no value from commitment to a future monetary policy.
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.