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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Fitting observed inflation expectations
Marco Del Negro,Stefano Eusepi +1 more
TL;DR: In this article, the authors consider three variants of the DSGE model and find that they do not fully capture the dynamics of this variable, and that time-variation in the inflation target is needed to capture the evolution of expectations during the post-Volcker period.
Journal ArticleDOI
Inflation Differentials between Spain and the EMU: A DSGE Perspective
TL;DR: In this paper, a dynamic stochastic general equilibrium model of a currency union with nominal rigidities is proposed to explain the sources of inflation differentials between the Economic Monetary Union (EMU) and one of its member countries, Spain.
Posted Content
Are Inflation Expectations Rational
TL;DR: In this paper, a computational dynamic general equilibrium model capable of generating aggregate behavior similar to the data along several dimensions is presented, and a standard regression on equilibrium realizations of inflation and inflation expectations over sample periods corresponding to those tests performed on actual data is performed.
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Understanding UK Inflation: The Role of Openness
TL;DR: This article examined the relationship between marginal cost and inflation in the United Kingdom and found that real marginal cost is not significant in the baseline specification, but a labour share measure becomes significant, but goodness of fit based on fundamental inflation remains poor, due to the presence of regime changes and structural change in the UK economy.
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Market Deregulation and Optimal Monetary Policy in a Monetary Union
TL;DR: In this article, the consequences of increased flexibility in goods and labor markets for the conduct of monetary policy in a monetary union are discussed. But the authors focus on the consequences that increased flexibility can have on the economic performance.
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.