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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The price puzzle revisited: can the cost channel explain a rise in inflation after a monetary policy shock?
TL;DR: In this article, the authors explore whether the cost channel solves the price puzzle and find that under certain parameter restrictions, the cost channels helps to generate an initial rise of inflation after a monetary contraction.
ReportDOI
Endogenous monetary policy regime change
TL;DR: In this article, the authors make changes in monetary policy rules (or regimes) endogenous. Changes are triggered when certain endogenous variables cross specified thresholds, and they examine three models of threshold switching to illustrate that expectations formation effects generated by the possibility of regime change can be quantitatively important.
Journal ArticleDOI
Reset Price Inflation and the Impact of Monetary Policy Shocks
TL;DR: In this article, the authors calculate reset price inflation, based on new prices chosen by the subsample of price changers, to dissect the discrepancy between persistence and stability of US inflation in recent decades.
Journal ArticleDOI
Optimal Monetary and Fiscal Policy in a Currency Union
Tommaso Monacelli,Jordi Galí +1 more
TL;DR: In this article, a tractable model for monetary and fiscal analysis in a currency union is presented, and its implications for the optimal design of such policies are analyzed, including the conditions for equilibrium determinacy and the effects of exogenous government spending variations.
Journal ArticleDOI
Monetary policy rules and the indicator properties of asset prices
TL;DR: In this article, the authors investigate the relationship between asset prices and inflation in a modern Keynesian model in which monetary policy controls inflation by manipulating the federal funds rate, and they show that including the asset prices themselves in the reaction function can invert the sense of the indicator properties.
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.