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
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High Frequency Identification of Monetary Non-Neutrality
Emi Nakamura,Jon Steinsson +1 more
TL;DR: In this article, the authors present estimates of monetary non-neutrality based on evidence from high-frequency responses of nominal and real interest rates, and find evidence of a "Fed information effect": FOMC announcements affect expectations not only about the evolution of monetary policy but also about future economic fundamentals.
Journal ArticleDOI
Business as Usual: A Consumer Search Theory of Sticky Prices and Asymmetric Price Adjustment
Luis M. B. Cabral,Arthur Fishman +1 more
TL;DR: In this paper, the authors developed a search theoretic model which is consistent with empirical evidence that prices are sticky with respect to cost changes and showed that prices respond more rapidly to cost increases than to cost decreases.
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Online Appendix to "Optimal Monetary Policy in a New Keynesian Model with Habits in Consumption"
TL;DR: In this paper, the authors consider the implications of external habits for optimal monetary policy, when those habits either exist at the level of the aggregate basket of consumption goods (superficial habits) or at individual goods (deep habits) and show that external habits generate an additional distortion in the economy, which implies that the flex-price equilibrium will no longer be efficient and that policy faces interesting new trade-offs and potential stabilisation biases.
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Addressing Household Indebtedness: Monetary, Fiscal or Macroprudential Policy?
Sami Alpanda,Sarah Zubairy +1 more
TL;DR: In this paper, the authors build a dynamic stochastic general-equilibrium model with housing and household debt, and compare the effectiveness of monetary policy, housing-related fiscal policy, and macro-prudential regulations in reducing household indebtedness.
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Inflation Dynamics and the Labour Share in the UK
TL;DR: This paper investigated the relationship between inflation and the share by estimating a pricing equation or new Phillips curve obtained from a structural dynamic model of price setting based on Rotemberg (1982) and extended to capture employment adjustment costs and the openness of the UK economy.
References
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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.